Hacking Crisis Escalates: Record Outflows from Aave

The KelpDAO-related security breach crisis in the cryptocurrency market has led to a significant liquidity shock in DeFi protocols. According to recent data, large-scale ETH outflows have occurred via Aave, while investor confidence is visibly weakening.

According to information shared by the on-chain analytics platform Lookonchain, the KelpDAO exploit resulted in a “bad debt” on Aave after the attacker withdrew ETH from the system using rsETH collateral. This development triggered panic selling, particularly among large investors.

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According to the data, a total of over $5.4 billion worth of ETH was withdrawn from the platform. During this period, it was reported that Justin Sun, a leading figure in the cryptocurrency market, also withdrew approximately 65,584 ETH (approximately $154 million).

Following these intense outflows, Aave’s ETH usage reached 100%. This indicates that the protocol’s available liquidity has been largely depleted and that new borrowing capacity may be severely limited.

*This is not investment advice.

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