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Ether withdrawals to resume after coordinated burn of fraudulent rsETH tokens on Arbitrum.

Market News
13 May 2026
Bitcoin
Bullish
pluang ai news

Ether withdrawals for KelpDAO users are set to resume within 24 hours following a coordinated burn of attacker-minted rsETH tokens on Arbitrum. The exploit involved fraudulent minting of 116,500 rsETH tokens, leading to over $190 million in undercollateralized loans on Aave V3. Recovery efforts included liquidation of attacker positions and burning of the fake tokens, restoring the integrity of the rsETH supply. With legal hurdles cleared and the rsETH bridge lockbox being refilled, normal withdrawal and liquidity conditions are expected to return soon, marking a major step in one of DeFi's most complex recoveries.

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