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CryptoUpdated×4•Originally published 21 April 2026•Updated 23 April 2026•

1 min read

Hoskinson Proposes Cardano and Midnight as Fix for $292M KelpDAO Hack

A hooded figure with a glowing digital network on their face stands before a purple digital dashboard with charts and code. North Korean flags and Korean text are in the orange background. Broken chai

Key Facts

1Charles Hoskinson labeled the KelpDAO hack the largest DeFi exploit of the year, triggering a contagion event that pulled billions in TVL from the ecosystem.

2Hoskinson is promoting Cardano and the Midnight sidechain as technical solutions to prevent the cross-chain message forgery that led to the exploit.

about 1 month ago

Version History

1 additional source confirmed this story

Version 4about 1 month ago

What changed: The story was updated to include analyst claims attributing current regulatory clarity to Ripple's legal efforts rather than Hoskinson's independent work.

Version 3about 1 month ago

What changed: Added new technical criticisms from Hoskinson regarding the SPHINCS+ algorithm and its impact on Bitcoin's flexibility and scalability.

Version 2about 1 month ago

What changed: Added details regarding Arbitrum freezing $71 million and the hacker's use of THORChain to launder funds.

Version 1about 1 month ago

What changed: Updated the story to include Hoskinson's concerns regarding the SPHINCS+ algorithm and Bitcoin's security against quantum threats.

Charles Hoskinson, founder of Cardano, has characterized the $292 million KelpDAO breach as the year's most significant DeFi exploit, identifying cross-chain message forgery as the core vulnerability. In a new technical critique, Hoskinson stated that Bitcoin's choice of the SPHINCS+ algorithm limits expressiveness and could restrict the long-term evolution of the protocol. While Hoskinson promotes Cardano and Midnight as essential infrastructure to prevent such failures, a debate has emerged regarding his regulatory influence. Analysts recently claimed that the credit for current regulatory clarity belongs to Ripple's legal precedents rather than Hoskinson's independent efforts. Meanwhile, the hacker moved funds via THORChain after the Arbitrum network successfully froze $71 million in ETH. These developments highlight the ongoing tension between rigid security standards, protocol flexibility, and the legal battles shaping the decentralized finance landscape.