# rsETH Recovery: The Complete Tracker *The full timeline of the $290M KelpDAO LayerZero bridge exploit and the rsETH recovery effort — from the hack to full restoration.* By [ETH Daily](https://ethdaily.io) · 2026-06-10 defi, security, staking --- A running record of the KelpDAO rsETH crisis: the $290M LayerZero bridge exploit, the on-chain and legal response, the DeFi United relief effort, and the eventual full restoration of rsETH backing. This tracker links every ETH Daily report in the saga so the full sequence is readable in one place. The Exploit ----------- The crisis began when [KelpDAO lost roughly $290M in a LayerZero bridge exploit](https://ethdaily.io/kelpdao-layerzero-bridge-exploit), draining the backing behind rsETH and freezing redemptions. LayerZero later [published a full post-mortem on the $292M exploit](https://ethdaily.io/layerzero-publishes-full-post-mortem-on-dollar292m-kelpdao-exploit), detailing how the attacker compromised the bridge and moved funds across chains. The On-Chain And Legal Response ------------------------------- Recovery of the stolen funds moved on multiple fronts. [Arbitrum froze 30,766 ETH belonging to the KelpDAO exploiter](https://ethdaily.io/arbitrum-freezes-kelpdao-exploiter-eth), while [Aave liquidated the attackers' rsETH positions](https://ethdaily.io/aave-liquidates-attackers-rseth-positions) to limit further damage to the protocol. On the legal side, [a law firm moved to claim KelpDAO victims' funds](https://ethdaily.io/law-firm-aims-to-claim-kelpdao-victims-funds), opening a dispute over how recovered assets would be distributed. DeFi United And The Relief Vehicle ---------------------------------- The core of the recovery was DeFi United, a cross-protocol coalition formed to make rsETH holders whole. We covered [the DeFi United relief vehicle for rsETH](https://ethdaily.io/defi-united-relief-vehicle-for-rseth) and broke down the mechanics in [DeFi United Explained: The rsETH Recovery Plan](https://ethdaily.io/defi-united-explained). Support came from across the ecosystem: [Lido offered 2,500 stETH to the rsETH relief vehicle](https://ethdaily.io/lido-offers-2500-steth-to-rseth-relief-vehicle), [DeFi United secured sufficient funds to restore rsETH backing](https://ethdaily.io/defi-united-secures-funds-to-restore-rseth), and [ArbitrumDAO approved the rsETH recovery effort](https://ethdaily.io/arbitrumdao-approves-rseth-recovery-effort). Restoration ----------- With funding in place, the recovery entered its final phase. [The KelpDAO rsETH recovery entered its final stage](https://ethdaily.io/kelpdao-rseth-recovery-enters-final-stage), [KelpDAO resumed rsETH withdrawals following the recovery operation](https://ethdaily.io/kelpdao-resumes-rseth-withdrawals-following-recovery-operation), and ultimately [KelpDAO rsETH was fully restored](https://ethdaily.io/kelpdao-rseth-is-now-fully-restored). KelpDAO subsequently [migrated rsETH to Chainlink CCIP](https://ethdaily.io/kelpdao-migrates-rseth-to-chainlink-ccip), hardening the token's cross-chain infrastructure against a repeat of the bridge failure. Why It Mattered --------------- The rsETH recovery became a reference case for coordinated DeFi crisis response: on-chain freezes, protocol-level liquidations, a multi-party relief vehicle, and DAO governance all converging to restore a liquid staking token's peg without a bailout. The episode also reshaped how rsETH and similar LSTs handle cross-chain messaging risk. Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created --- *Originally published on [ETH Daily](https://ethdaily.io/rseth-recovery-tracker)*