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forklog.media Investors pull more than $8.6bn from Aave after Kelp hack

In two days the total value locked (TVL) at leading crypto-lending service Aave plunged from $26.3bn to $17.7bn, according to DefiLlama.  Source: DefiLlama.  The AAVE token fell by more than 15% to $91. Its market capitalisation slid from $1.8bn to $1.3bn.  Hourly chart AAVE/USDT, Binance. Source: TradingView.  In Aave v3, pools for USDT and USDC are fully exhausted. Assets worth $5.1bn are frozen; they can be withdrawn only once fresh liquidity arrives or loans are repaid. Source: Aave.  The Kelp hack and its fallout  The plunge in Aave’s metrics was triggered by a hack of the Kelp liquid restaking protocol. On April 18 attackers siphoned 116,500 rsETH worth $293m from Kelp DAO’s LayerZero-based cross-chain bridge. The thieves deposited the stolen tokens into Aave v3 as collateral and borrowed wETH against them. On the platform they took out about $196m; their total positions across Aave, Compound and Euler reached roughly $236m. According to Lookonchain, the operation left the project with a balance-sheet “hole” of around $195m — funds that are already irrecoverable. Due to the KelpDAO exploiter borrowing over 82,600 $ETH ($195M) from #Aave using $RSETH as collateral, bad debt has appeared on #Aave.Many whales have withdrawn funds from #Aave, causing its TVL to drop from $26.396B to $20.114B — a decline of $6.28B.Major withdrawals… pic.twitter.com/rhN28AMul9— Lookonchain (@lookonchain) April 19, 2026 Curve Finance founder Mikhail Egorov also noted that Aave and other protocols now hold hundreds of millions of dollars in dubious collateral and bad debt.  “Aave has rsETH that cannot be sold, and it has no ETH because it is all lent out. No one can withdraw Ethereum,” he added. At first the team said the Umbrella reserve fund would cover any deficit. It later softened this to “exploring avenues for compensation”.  The rsETH markets on Aave V3 and Aave V4 have been frozen. Aave's contracts have not been exploited and this is an exploit related to rsETH.The freeze follows an exploit of the Kelp DAO rsETH bridge. Freezing the rsETH markets prevents new deposits and borrowing against rsETH…— Aave (@aave) April 18, 2026 The rsETH markets in v3 and v4 are frozen to prevent suspicious activity. wETH reserves are locked on Ethereum, Arbitrum, Base, Mantle and Linea. Pending clarification, several projects suspended use of the Kelp DAO bridge: Curve Finance, Ethena, and other networks and protocols that work with rsETH or LayerZero. Outflows also hit Solana. Journalist Colin Wu noted that on several USDC markets in Kamino — the network’s leading lending protocol — deposit rates and utilisation ratios spiked.  The USDC reserve in the $178m Prime Market is fully exhausted — there are no free funds — and utilisation in several other vaults exceeded 95%.  TVL across DeFi as a whole fell from $99.4bn to $85.8bn.  Source: DefiLlama.  LayerZero’s investigation  Kelp DAO is still determining the root cause. Meanwhile, LayerZero developers shared early findings from their internal probe.  https://t.co/3vIHs3Xgs4— LayerZero (@LayerZero_Core) April 20, 2026 They said North Korean hackers were behind the attack — in particular the TraderTraitor group, implicated in the hacks of Ronin ($625m), Bybit ($1.5bn) and Drift Protocol ($280m).  LayerZero explained that the attackers gained access to a list of RPC servers used by LayerZero Labs’ decentralised verifying network (DVN). They then “poisoned” two of them, causing a fake cross-chain message to be delivered into the DVN. The attackers also launched a DDoS attack on the clean servers so the network would rely on the poisoned ones. Kelp used a single, non-redundant scheme, so the false request passed and the bridge unlocked the tokens. “Exploiting a single point of failure meant that an independent verifier could not intercept and reject the forgery. LayerZero and other external parties had previously informed the project about best practices for DVN diversification. Despite these recommendations, Kelp opted for a 1/1 DVN scheme,” the experts noted.  They stressed that the contamination did not affect other assets or applications. LayerZero continues to work with law enforcement on the investigation and is tracking the stolen funds. In April, an Ethereum Foundation fellow identified 100 North Korean IT agents in Web3 companies. 

blockmanity.com Binance Co-Founder: Blockchain Poised to Overthrow SWIFT in Global Finance Shift

Binance Co-Founder: Poised to Overthrow in Global Finance Shift In a bold statement that has the crypto world buzzing, a top Binance leader predicts that technology could soon replace , the old-school system that powers most international money transfers. This […] The post Binance Co-Founder: Blockchain Poised to Overthrow SWIFT in Global Finance Shift appeared first on Blockmanity.

blockmanity.com Web3’s Hacking Epidemic Exposed: Operational Overhaul Critical to End the Security Nightmare

Introduction: A Wake-Up Call for Web3 The Web3 world is under siege. Hacks are happening more often, and they are hitting hard. New data shows that in early 2025, most attacks came from tricking people, not breaking code. This means […] The post Web3’s Hacking Epidemic Exposed: Operational Overhaul Critical to End the Security Nightmare appeared first on Blockmanity.

bitcoinist.com Ripple CTO Emeritus Warns RLUSD Review Exposed A DeFi Security Red Flag

Ripple CTO Emeritus David Schwartz, said his review of DeFi bridge designs for Ripple’s RLUSD surfaced a recurring problem that may now be at the center of the KelpDAO/rsETH incident: critical security controls exist, but teams are often nudged toward lighter configurations because they are easier to operate and faster to scale. In a series […]

news.bitcoin.com Oil Prices Bounce as Middle East Conflict Reignites

Markets reacted swiftly to the reactivation of the hostilities in the Middle East: oil futures for both WTI and Brent benchmarks rose as President Trump announced that an Iranian-flagged cargo ship named TOUSKA had been attacked, with the Iranian regime allegedly retaliating by attacking U.S. ships with drones. Key Takeaways: The U.S. Navy attacked the […]

cryptopotato.com Startale Expands to Abu Dhabi, Aligning With UAE’s State-Backed Crypto Push

[PRESS RELEASE – Abu Dhabi, UAE, April 20th, 2026] Startale Group, the global blockchain infrastructure company, is expanding into Abu Dhabi after being selected for Hub71’s Digital Assets cohort, deepening its alignment with one of the world’s fastest-growing state-backed crypto ecosystems. Through the program, backed by Mubadala and the Abu Dhabi Department of Economic Development, […]

forklog.media Survey: 65% of Japanese Institutions Use Bitcoin for Portfolio Diversification

The Japanese financial holding company Nomura and its subsidiary Laser Digital released a report on institutional investors' attitudes towards digital assets in 2026. The survey included 518 professionals: representatives of family offices, sovereign funds, and large organizations. Key findings: 31% of respondents have a positive outlook on the market's prospects, up from 25% in 2024; the proportion of skeptics decreased from 23% to 18%; 65% of those surveyed already use cryptocurrencies for portfolio diversification; most investors plan to allocate 2% to 5% of their capital to digital assets over the next three years. Investors show significant interest in passive income: more than 60% are considering staking, mining, lending, and investments in RWA. In the stablecoin segment, coins issued by major banks are the most trusted. Investors plan to use them for cross-border transactions and capital management. The industry's development in Japan was aided by regulatory updates at the end of 2025. Despite this, barriers remain, including high volatility, custodial risks, and a lack of tools for fundamental analysis. Nomura analysts noted that investors have moved beyond viewing cryptocurrency as an experiment and are now focusing on practical risk management issues. Earlier in February, experts at River recorded a record increase in Bitcoin adoption by institutional banks, public companies, and governments.

blockmanity.com Enforcement Directorate’s Bold Raids on Karnataka MLA’s Sons Uncover Crypto Money Laundering Links

Enforcement Directorate’s Bold on Karnataka MLA’s Sons Uncover Links In a major crackdown, the Enforcement Directorate (ED) has raided several locations connected to the sons of Karnataka Congress MLA NA Harris and other individuals. These searches target alleged activities that […] The post Enforcement Directorate’s Bold Raids on Karnataka MLA’s Sons Uncover Crypto Money Laundering Links appeared first on Blockmanity.

news.bitcoin.com Coinbase Starts Rolling out AI Agents Modeled After ‘Legendary’ Employees

According to Coinbase co-founder and CEO Brian Armstrong, the company is currently testing a rollout of AI agents that can be present in virtual environments, including Slack and email. The first two agents are modeled after two former employees, co-founder Fred Ehrsam and Balaji Srinivasan. Key Takeaways: Coinbase tests AI Slack agents mimicking ex-employees, setting […]

bitcoinist.com Bitcoin Price Could See Another Crash, But What Is The Long-Term Prognosis?

With the Bitcoin price clearing $78,000 last week, it has triggered bullish sentiment in the crypto market once again. This move has also led to forecasts that the Bitcoin price is headed back for the 6-figure mark. However, not everyone is following this school of thought and believes that the rally will continue. Crypto analyst […]

news.bitcoin.com Tokyo Offers Subsidies to Companies Promoting Digital Yen Usage

With this initiative, the Metropolitan Government of Tokyo seeks to establish a healthy market for stablecoins, which are expected to serve as a new payment infrastructure and promote the establishment of a digital yen-based economy. Key Takeaways: Tokyo launched 40M yen subsidies for stablecoins, aiming to build a future digital economic zone. After a 1st […]

blockmanity.com SkyMapper L1: Avalanche Blockchain Brings Tamper-Proof Telescope Data to Astronomy and Beyond

Discovering the Stars with Unbreakable Data: Introducing SkyMapper L1 Astronomers have always chased the stars, but now a new tool is making sure their discoveries can’t be questioned. is more than tech—it’s a trust layer for the stars. Whether you’re […] The post SkyMapper L1: Avalanche Blockchain Brings Tamper-Proof Telescope Data to Astronomy and Beyond appeared first on Blockmanity.

news.bitcoin.com Report: NYDIG Close to Buying Alcoa’s Massena New York Smelter Site for Bitcoin Mining Operations

Alcoa Corp. is in advanced talks to sell its idled Massena East aluminum smelter site in upstate New York to NYDIG, the bitcoin mining and digital asset infrastructure firm, according to Bloomberg. Key Takeaways: According to a recent report, Alcoa is in advanced talks to sell its Massena East smelter site to NYDIG, with a […]