update<\/a> from Arbitrum, the network\u2019s Security Council seized 30,766 ETH from an address linked to the attacker on Arbitrum One, placing the funds into a frozen intermediary wallet to prevent further movement.<\/p>\nArbitrum said the intervention was carried out without interrupting network operations or affecting users and applications, with the assets set to remain locked unless governance decides on the next course of action.\u00a0<\/p>\n
\u201cThe Security Council acted with input from law enforcement as to the exploiter\u2019s identity, and, at all times, weighed its commitment to the security and integrity of the Arbitrum community without impacting any Arbitrum users or applications,\u201d the team said.<\/p>\n
The move comes days after a major exploit targeting Kelp DAO\u2019s LayerZero-powered bridge drained 116,500 rsETH, valued at around $292 million.\u00a0<\/p>\n
Early analysis from LayerZero linked the attack to North Korea\u2019s Lazarus Group, pointing to a coordinated compromise of RPC nodes used within the decentralized verified network.<\/p>\n
Investigators found that two nodes had been poisoned while a third was disrupted through a DDoS attack, allowing a malicious cross-chain message to pass validation and mint rsETH without backing.<\/p>\n
<\/p>\n
Portions of the stolen assets were later routed into Aave V3, where the attacker used rsETH as collateral to borrow wrapped ETH, raising concerns about potential system-wide exposure.<\/p>\n
Kelp DAO responded by pausing contracts and blacklisting wallets tied to the breach, blocking a further 40,000 rsETH, estimated at roughly $95 million, from being drained. Work on recovery and coordination with ecosystem partners is ongoing.<\/p>\n
Security design dispute draws scrutiny<\/h2>\n
Tensions have surfaced between LayerZero and Kelp DAO over the setup used to secure the bridge.\u00a0<\/p>\n
LayerZero said the project relied on a 1-of-1 decentralized verified network configuration, arguing that such a setup created a single point of failure without independent validation.\u00a0<\/p>\n
\u201cLayerZero and other external parties previously communicated best practices around DVN diversification to Kelp DAO,\u201d the firm said, adding that the project \u201cchose to utilize a 1\/1 DVN configuration.\u201d<\/p>\n
Kelp DAO disputed that claim, stating the configuration was part of the default deployment framework.\u00a0<\/p>\n
\u201cThe 1-of-1 DVN setup is the configuration documented in LayerZero\u2019s documentation and shipped as the default for any new OFT deployment,\u201d Kelp said, adding that the design had been \u201caffirmatively confirmed as appropriate\u201d in earlier discussions.<\/p>\n
<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Arbitrum has moved to lock down a large portion of funds tied to the Kelp DAO exploit, stepping in as the fallout from the cross-chain breach continues to spread. Summary…<\/p>\n","protected":false},"author":1,"featured_media":10096,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-26432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=26432"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26432\/revisions"}],"predecessor-version":[{"id":26433,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26432\/revisions\/26433"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/10096"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=26432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=26432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=26432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}