Justin Sun launches KelpDAO intervention as inside job rumors grow

A major $293 million exploit of KelpDAO’s LayerZero bridge on April 18, 2026 drained 116,500 rsETH and triggered broad DeFi contagion as the attacker used the stolen rsETH as collateral on Aave, provoking large withdrawals and pressure on lending markets. Justin Sun publicly appealed to the hacker for a deal to avoid further harm, and recovered roughly 65,584 ETH (~$154 million). KelpDAO suspended multisig governance, deposits, withdrawals and tokens, while sources say L1 rsETH is fully collateralized and the relevant Aave market remains solvent. The incident has accelerated outflows and shaken confidence in bridge security and governance practices, fueling insider-job suspicions and heightening short‑term bearish sentiment for DeFi risk assets.