The recent $293 million hack of Kelp DAO has knocked $20 billion off of the total value locked (TVL) in decentralized finance, according to JPMorgan. DeFi was the unintended victim of the Kelp DAO hack, with some $230 million worth of fake tokens used to borrow on the Aave lending platform. That bad debt saw Aave lose $10 billion in total value locked, referring to the value of tokens deposited in Aave’s lending pools. But the damage isn’t limited to Aave, said JPMorgan analysts led by Nikolaos Panigirtzoglou in an April 23 report. In the days following the April 18 exploit of Kelp DAO, another $10 billion has moved off…
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Latest Hack Pushes April Crypto Losses Over $600M
More than a dozen thefts this month alone
Just days after the Kelp DAO bridge was hit with a massive $293 million exploit, yet another protocol has been hacked. While the amount stolen was comparatively small — just $3.5 million — there have been more than a dozen reported hacks/exploits this month alone. And it pushed the amount stolen over $600 million, with another eight days to go. Decentralized finance (DeFi) protocol Volo said on April 22 that three of its vaults had been robbed, but that another $28 million in other vaults is safe. All funds have been frozen until Volo figures out what happened and how to prevent a recurrence. “We want to be clear,” Volo…
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Aave Depositors Stuck As Bad Debt Piles Up
Lending market is the victim in the $292M Kelp DAO hack
Lending market Aave stands to be saddled with as much as $230 million worth of bad debt in the wake of a $292 million hack of the Kelp DAO crosschain bridge. And it could get worse. That’s according to LlamaRisk, Aave’s risk management provider, which outlined two scenarios for the amount of bad debt the lending market will be saddled with. One leaves it with $230 million and another with $123 million. Aave is the fault-free victim of the hack, in which $292 million worth of a token called rsETH was created out of thin air on Kelp DAO and then moved onto Aave, where the hackers took out loans…
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Scammers Demand Toll in BTC For Passage Through Strait of Hormuz
At least one vessel paid and was fired upon by Iran
Scammers posing as Iranian authorities are offering passage through the Strait of Hormuz in exchange for cryptocurrency, Greek maritime risk management firm Marisks has warned. “These messages are a scam,” Marisks said, warning that they did not come from legitimate Iranian authorities, Reuters reported on April 21. Iran’s blockade of the Strait, which it briefly lifted, has closed the vital waterway to hundreds of ships carrying oil and gas, threatening to create energy shortages around the world. Roughly a fifth of the world’s supply of oil and liquefied natural gas must pass through the Strait. In response, the U.S. is blockading Iranian ports. At least one vessel is believed to…
