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Lazarus Group exploits ThorChain for $292M rsETH laundering operation

A major Lazarus Group exploit minted roughly $292 million in unbacked rsETH, which was used as collateral to borrow about $236 million across protocols, generating approximately $200 million in bad debt. Stolen funds were laundered via ThorChain, DEXs and non‑KYC services. Prediction markets have priced a separate $100M+ hack outcome at 100% YES (251 days remaining), indicating the market already views another large hack as certain. Reactive measures include KelpDAO pausing rsETH contracts and Aave launching a “DeFi United” initiative, but traders appear to consider these insufficient to prevent further large breaches. Monitor on‑chain analytics from Arkham, ZachXBT, Chainalysis and TRM Labs for updates that could affect related markets and prediction contracts.

Category

Ethereum

Sentiment

Bearish

Event

Security incident

Reading time

1 min