Kelp DAO hacker move $175M ETH after rsETH bridge wahala; Arbitrum freeze $71M

Di Kelp DAO hacker use LayerZero‑powered bridge exploit komot 116,500 rsETH (about $292M, ~18% of circulating supply). After dem pause key contracts, di attacker deposit di stolen rsETH as collateral for Aave V3 and borrow around $196M in WETH, wey raise immediate bad‑debt risk for Aave. Arbitrum Security Council later freeze 30,766 ETH (~$71M) inside governance‑controlled intermediary wallet. But on‑chain monitoring (Arkham) show say Kelp DAO hacker still dey move funds. Within hours, dem report say di attacker transfer all ~75,701 ETH (about $175M) to Ethereum mainnet and begin to launder, with di freeze covering less than 30% of di stolen ETH. Market impact follow quick: Aave report $8.45B deposit outflow and AAVE drop close to 20%. rsETH also retrace from $2B+ peak to roughly $1.3B after failed recovery attempt, consistent with forced unwinds. Di bigger issue still dey unsolved: LayerZero point to “single‑verifier” (1‑of‑1 DVN) design as bridge failure risk, while Kelp DAO argue say di setup match LayerZero’s documented defaults and di compromised validator stack na LayerZero infrastructure. For traders, di main risk na say di hacker’s fast fund movements plus partial freeze coverage fit intensify risk‑off behaviour around cross‑protocol collateral, especially for restaking‑linked assets like rsETH.