Andre Cronje says roughly $200M in rsETH was stolen, citing possible private key leak or misconfiguration

Andre Cronje, co-founder of Sonic Labs and founder of Flying Tulip, said on April 19 that his team is still investigating the L0/rsETH incident. Early findings indicate around $200 million in rsETH may have been stolen, likely stemming from a compromised private key or a configuration error. Cronje said the stolen rsETH was later deposited into Aave to borrow ETH, citing insufficient rsETH liquidity. He noted the position was technically collateralized, and added that even in a scenario where collateral proved inadequate, Aave's token and safety module are designed to act as the first layer of protection against bad debt. He also cautioned that Aave has no mechanism to reimburse user losses, meaning an extreme outcome could spark a bank-run style withdrawal wave. Even so, he assessed the risk as contained given Aave's roughly $7 billion in ETH, versus about $100 million in withdrawals and PUT's $17 million in exposure. Cronje emphasized that the priority is maintaining PUT user liquidity. He said the team has withdrawn all ETH from Aave into its own wrapped contract after Aave's available liquidity fell below their minimum threshold.