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Crypto Boy
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Everything you need to know about the rsETH exploit ($292 million):
attacker targets insecure bridge configuration
Verifier setup:
Only one approval is required, and this is the single point of failure.
Attacker forges cross-chain message.
Tricks Bridge into Release:
116,500 fake $rsETH worth ~$292 million
About 36% of total supply
Unbacked ETH tokens created from thin air by the attacker (minted)
Attacker receives fake rsETH on
Ethereum
Immediately deposits it into Aave as collateral
then borrows:
106,467 ETH (~$250M)
Started selling and swapping rsETH.
bad debt created of more than $177 million.
WETH pool utilisation hits 100%
Aave freezes rsETH market
exploit was not in core rsETH backing
exploit hit bridged rsETH version
attacker wallet publicly tracked
funded via Tornado Cash
one of the biggest bridge failures of 2026


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🚨$292M DRAINED, BIGGEST EXPLOIT IN 2026
An attacker drained 116,500 rsETH (18% of supply) from Kelp DAO’s LayerZero-powered bridge, marking 2026’s largest crypto exploit so far.
Emergency freezes were triggered across Aave, SparkLend, Fluid, and Upshift as wrapped ether became stranded across 20 chains.


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BREAKING: The U.S. & Iran are no longer expected to hold a diplomatic meeting this weekend. polymarket.com/event/us-x-ira…
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