LayerZero identified North Korea’s Lazarus Group as the likely culprit behind the Kelp DAO exploit that resulted in the theft of 116,500 rsETH valued at $292 million. The exploit was caused by a single-DVN setup without a backup verifier, leading to a significant drop in DeFi TVL and Aave outflows exceeding $10 billion. Multiple DeFi protocols paused LayerZero OFT bridges as a precaution, while efforts to trace the stolen funds are ongoing.

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