LayerZero Blames Kelp for $294M Exploit, Links Attack to Lazarus Group

Key Facts

Tensions between LayerZero and Kelp DAO have intensified following the April 18, 2026, exploit totaling $294 million, with the attack attributed to North Korea's Lazarus Group. While Dune Analytics data shows 50% of LayerZero applications use minimal security levels, new on-chain evidence has detected the laundering of $80 million in stolen ETH via THORChain. This suspicious activity caused THORChain swap volumes to skyrocket to $394 million, a massive surge considering daily volumes were typically under $35 million prior to the exploit. These developments follow a parallel $285 million theft from Drift Protocol, as the Lazarus Group continues to launder assets across the Ethereum and Bitcoin networks. The scale of these incidents has put cross-chain security under intense scrutiny, potentially prompting stricter regulatory oversight within the DeFi sector. The situation underscores the escalating threat posed by state-backed actors to decentralized financial infrastructure.

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