KelpDAO Hack Triggers $8.45 Billion Aave Withdrawals as $292 Million Is Stolen

A hack targeting KelpDAO stole $292 million in cryptocurrency and led to $8.45 billion being withdrawn from Aave over a 48-hour period, raising concerns about Aave’s risk management. According to NS3.AI, the attacker used KelpDAO’s LayerZero bridge, and the incident exposed weaknesses in how Aave manages system risk. The report said Aave stabilized the situation through a $300 million emergency bailout. Aave plans to address broader system risks through its upcoming V4 upgrade.