Aave Liquidates Kelp DAO Attacker's Remaining rsETH Positions

According to Aave's announcement on Wednesday, the onchain lending platform has liquidated the Kelp DAO attacker's remaining rsETH positions as part of a previously announced recovery plan. The liquidated collateral has been moved to the Recovery Guardian, a multisig managed by the DeFi United initiative, which is working to restore rsETH backing and compensate affected users.

The liquidation represents one of the final steps in the community recovery effort from a $292 million exploit. On April 28, an attacker with suspected connections to North Korea manipulated Kelp DAO's LayerZero-powered bridge to fraudulently mint 116,500 unbacked rsETH on Ethereum, which were then deployed across lending protocols including Aave and Compound to extract ETH. Contributions to DeFi United have exceeded $320 million.