Kelp DAO Signals Withdrawal Reopening After Exploiter rsETH Burn

Kelp DAO and Aave have carried out a coordinated recovery process to restore full backing for the rsETH liquid staking token, including the burning of tokens associated with an exploiter on the Arbitrum network.

Following this action, 117,132 rsETH, worth about $278 million, will be progressively replenished over two weeks. These funds are being moved through the Aave Recovery Guardian multisignature wallet and into the LayerZero OFT adapter, which oversees rsETH locking, minting, burning, and cross-chain transfers.

As this replenishment continues, the protocol expects withdrawals to reopen roughly 24 hours after the first tranche is returned to the smart contract. Once that step is complete, all major functions—including deposits, redemptions, bridging, and claims—will resume normal operation.

Source: Kelp DAO