KelpDAO's rsETH Cross-Chain Bridge Breached, 116,500 rsETH Taken

LayerZero Labs said a May 20 report confirmed a security breach involving KelpDAO's rsETH cross-chain bridge, with roughly 116,500 rsETH stolen, valued at about $292 million. Investigators including Mandiant and CrowdStrike attributed the incident to TraderTraitor, a North Korea-linked hacking group. The intrusion began on March 6, 2026. Attackers used social engineering to compromise LayerZero developer accounts, gained access to the RPC cloud environment, and altered data. LayerZero Labs outlined changes to its security posture, including rebuilding its cloud infrastructure, moving to short-term credentials, and adding multi-party approval controls.