Aave liquidates Kelp DAO attacker assets, advancing $290 million recovery

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Techub News message, according to CoinPost, DeFi lending protocol Aave announced on May 7 that it has completed the forced liquidation of the rsETH position held by the attacker of Kelp DAO. This liquidation was carried out on the Ethereum and Arbitrum networks, involving an illicit outflow of about $292 million that occurred in April 2026. The liquidated assets have been transferred to the Recovery Guardian multisignature wallet, which is managed by the community joint organization “DeFi United,” for subsequent compensation.

The attacker used a LayerZero bridge vulnerability on April 18 to illegally mint 116,500 uncollateralized rsETH, and transferred funds by collateralizing Ethereum on Aave and Compound for lending. Currently, DeFi United has pledged more than 32,000 ETH for the buyback of the illegal rsETH and to replenish bridged locked assets, and Compound will also implement similar liquidation measures, which are expected to recover about 16,776 ETH.

AAVE-0.71%
ETH-1.65%
COMP-3%
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