Hackers Steal $290 Million From Kelp DAO in Largest Crypto Theft of 2026
LayerZero accuses North Korea's TraderTraitor group of carrying out the heist via bridge exploit
Quick Look
- Hackers stole over $290 million in cryptocurrency from Kelp DAO over the weekend, making it the largest crypto theft of 2026 so far.
- LayerZero, whose bridge was exploited in the attack, accused North Korea's TraderTraitor hacking group, citing preliminary indicators.
- The attackers exploited a security configuration that did not require multiple verifications for transactions.
AI-generated summary
Why It Matters
This is the second major crypto hack of 2026, following a $285 million theft from crypto exchange Drift in April. Cross-chain bridges have become frequent targets for hackers due to their role in connecting different blockchain networks.
Over the weekend, hackers stole more than $290 million in cryptocurrency from Kelp DAO, a protocol that allows users to earn yields on idle crypto investments. By Monday, LayerZero, one of the projects affected by the hack, accused North Korea of carrying out the heist. The hack is now the largest crypto theft of the year so far, following an earlier hack at crypto exchange Drift in April netted hackers around $285 million. Per its post on X, LayerZero said the hackers exploited Kelp DAO via its LayerZero bridge, which allows different blockchains to send instructions to each other. The hackers then took advantage of Kelp's own security configuration, which did not require multiple verifications before approving transactions. That allowed the hackers to siphon off the funds with fraudulent transactions. The company cited "preliminary indicators" that point to North Korea as the culprit, in particular its hacking group that targets crypto known as TraderTraitor. Kelp DAO responded to LayerZero blaming it for the theft instead.
What to Watch
AI outlook — possibilities, not facts
Kelp DAO will implement multi-signature verification for all bridge transactions
Likely · Within weeks
Regulatory scrutiny on cross-chain bridges will increase
Very likely · Within months
More crypto platforms will review security configurations
Likely · Within weeks
Open Questions
- What specific vulnerability was exploited in LayerZero bridge?
- Will Kelp DAO compensate affected users?
- What security improvements will be implemented?
