"An attacker exploited KelpDAO's cross-chain bridge on April 18, stealing 116,500 restaked ETH worth roughly $292 million. The breach triggered more than $13 billion in DeFi TVL outflows within 48 hours, hitting Aave, Compound, Morpho, and at least 9 other protocols."
"Charles Hoskinson says Midnight's zero-knowledge proofs and multi-party computation could prevent this class of attack from repeating. He added: Bridges can be very problematic. A one-of-one verifier is not good. Don't do that."
"The attacker submitted a spoofed Layerzero message that reached the endpoint v2 contract connected to Kelp's restake adapter, which then released the tokens from an Ethereum escrow."
On April 18, an attacker exploited KelpDAO's cross-chain bridge, stealing 116,500 restaked ETH valued at approximately $292 million. This breach led to over $13 billion in total value locked (TVL) outflows from the DeFi ecosystem within 48 hours, affecting multiple protocols including Aave and Compound. Charles Hoskinson emphasized that traditional DeFi threat models are outdated, highlighting the risks associated with single decentralized verifiers and the potential for collateral to be compromised in such attacks. He suggested that zero-knowledge proofs and multi-party computation could mitigate future risks.
Read at news.bitcoin.com
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