Aave Labs Liquidates Kelp DAO Attacker’s Remaining rsETH Positions Across Ethereum and Arbitrum

Aave Labs has liquidated the remaining rsETH positions held by the Kelp DAO attacker across Ethereum and Arbitrum, marking a major step toward restoring rsETH backing and reimbursing affected users.

The protocol described the action as a key milestone in its “DeFi United” recovery plan. Collateral tied to the April 18 exploit, which involved losses of about $293 million, has now been transferred to a Recovery Guardian multisig wallet.

Aave confirmed that user funds were never at risk and said its Umbrella insurance system was not triggered during the incident.

Earlier, the team estimated that removing the attacker’s remaining collateral would unlock roughly 13,000 ETH, worth about $30.2 million.

Source: X (formerly Twitter)