Major crypto hack triggers contagion shock in DeFi ecosystem

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Lisa Monica, Ramdhani Pratama20 April 2026, 08:55 WIB
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Hacker steals $293M rsETH, triggering DeFi contagion and forcing Aave to freeze related markets

JAKARTA – A major hack in the decentralised finance (DeFi) sector occurred on Saturday after an attacker exploited a cross-chain bridge and drained nearly US$300 million, triggering disruptions across several crypto platforms.

As reported by bloomberg,, a total of 116,500 rsETH, a restaking token belonging to Kelp DAO, was withdrawn from the system after the attacker breached a bridge based on LayerZero. The losses are estimated at US$293 million, making it the largest DeFi hack of 2026 so far.

“We identified suspicious cross-chain activity involving rsETH,” Kelp DAO said in a post on X. “We have suspended rsETH contracts across the mainnet and several Layer 2 networks while we investigate.”

Kelp DAO’s business model allows users to exchange staking tokens such as stETH or cbETH for rsETH, which is then used across various DeFi applications while continuing to generate yield. The widespread use of this asset meant the impact of the incident spread rapidly.

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Security firm Cyvers said the hack quickly escalated into a cross-protocol crisis. “This is not just a protocol-level vulnerability, but immediately became a cross-protocol contagion event,” it said, with at least nine platforms affected.

Interconnected protocols in DeFi amplify risk. The same assets are often used as collateral for loans or liquidity across multiple services. When their value is disrupted, stress quickly spreads to other systems.

“Incidents like this highlight the risks of interconnected systems in DeFi,” said Cyvers CEO Deddy Lavid. “The challenge is no longer just preventing exploits at the contract level, but understanding how quickly they can cascade across integrated protocols.”

As a mitigation step, Aave temporarily paused markets related to rsETH. “Freezing the rsETH market prevents new deposits and borrowing against rsETH collateral while the situation is being assessed,” the platform said. Aave’s token was reported to have fallen around 20% in Asian trading on Sunday.

According to Cyvers, further losses were narrowly avoided in the final minutes. Chief Technology Officer Meir Dolev said the system was “just three minutes away from losing an additional $100 million” before further attacker actions were blocked.

The hack surpasses a previous incident involving the Solana-based Drift project and adds pressure to the DeFi sector, which is already under scrutiny over systemic interconnected risks. (DH/LM)

Source: www.idnfinancials.com