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9 May 2026, 13:32

LayerZero Labs open letter attempts to explain failures around KelpDAO hack

LayerZero Labs released an open letter explaining its failures in communication and operations following the KelpDAO hack by the Lazarus Group. The cyberattack did not affect LayerZero Labs’ protocol but did affect its internal systems, leading the firm to acknowledge mistakes in previous operations. LayerZero Labs released its apology letter on May 8, 2026. LayerZero admits to past multisig misuse Around April 19, 2026, the Lazarus Group attacked LayerZero Labs’ internal RPC nodes, which were used by their DVN network. The attackers corrupted the source of truth for these internal RPCs and simultaneously launched a DDoS attack against LayerZero Labs’ external RPC provider. LayerZero clarified that the LayerZero protocol was not affected during this incident. As reported by Cryptopolitan , the hack affected only a single application, which is 0.14% of all LayerZero apps and 0.36% of the total value of assets bridged on the platform. The breach led to the $300 million rsETH exploit targeting KelpDAO. In the apology , LayerZero Labs also commented on another security issue that occurred three and a half years ago. In one instance, a signer used the hardware wallet intended for multisig transactions for an individual transaction for McPepes memecoin trading on Uniswap using their personal wallet. A signer was replaced, wallets were swapped, and measures were put in place to prevent similar occurrences in the future. This was in direct contradiction to previous public statements by LayerZero co-founder Bryan Pellegrino, who had referred to such activities as standard “OFT testing” less than 24 hours earlier. Some users pointed out the discrepancy, noting that the memecoins involved had been observed in many transactions from the same multisig wallet for quite some time. As reported by Cryptopoltan, LayerZero clarified that their multisig mechanism only allows control over Endpoint functionality, including chain addition and test default updates. LayerZero pushes developers to do a better security job LayerZero has reiterated its foundational architecture, designed to eliminate single points of failure common in traditional bridges. Every application can independently own its end-to-end security without relying on LayerZero Labs. The company advised developers to take concrete steps: pin all configurations to avoid default settings controlled by LayerZero Labs; increase block confirmations on each chain to minimize reorganization risks; configure DVNs with at least two (preferably three to five) independent parties; and consider operating their own required DVN. The company has also listed some assumptions about trust and liveness. LayerZero Labs’ default applications and DVN that rely on a single verifier rely on all the trust from LayerZero Labs’ multisig. Gas relaying services, such as Essence and LayerZero executors, affect only liveness. After the event, LayerZero Labs no longer supports DVN in the 1/1 configuration; instead, pathway defaults have been upgraded to either 5/5 or 3/3 configurations, where possible, and development of a DVN client in Rust is underway. DeFi implications from the LayerZero breach The response to the attack was met with immediate criticism for its initial attempt to deflect responsibility onto its partners. KelpDAO and Solv Protocol have already switched their systems to Chainlink, and Beefy, Ethena, BitGo, Lombard, and many others are reconsidering their integrations. There are concerns about reduced bridged transaction volumes, Stargate earnings, and $ZRO token buybacks. LayerZero can't be saved anymore? After the ~$300M rsETH exploit, @LayerZero_Core blamed its partners instead of owning it, and they felt the consequences immediately. @KelpDAO & @SolvProtocol have already left, both migrating to @Chainlink . Not only that, the projects below… pic.twitter.com/hkKHCHXGou — Winter Soldier ❄️🙋🏻‍♂️ (@WinterSoldierxz) May 9, 2026 LayerZero Labs pledged 5,000 ETH to the DeFi United rescue plan and another 5,000 ETH to maintain Aave’s liquidity pools in response to the attack. Nevertheless, the incident sparked a wider discussion about security in cross-chain protocols, despite the expressed apology and the promise to improve the multisig threshold, which is set at 7/10 using OneSig. LayerZero Labs maintains that the protocol remains an essential instrument for conducting safe and sizable transactions, but it will be necessary to wait until the next few weeks to see how developers and organizations move. Your bank is using your money. You’re getting the scraps. Watch our free video on becoming your own bank

9 May 2026, 13:00

Kelp DAO Moves Forward With rsETH Collateralization on Aave After $292M Exploit

BitcoinWorld Kelp DAO Moves Forward With rsETH Collateralization on Aave After $292M Exploit Kelp DAO, the Ethereum restaking protocol that suffered a devastating exploit of approximately $292 million, has announced it will resume a series of contract operations over the next 24 hours. The operations, coordinated with the lending protocol Aave, are designed to advance the next phase of establishing rsETH as a collateral asset. Background of the Exploit On June 23, 2024, an attacker exploited a vulnerability in Kelp DAO’s smart contracts, siphoning roughly 292 million worth of assets. The incident sent shockwaves through the restaking ecosystem, raising questions about the security of liquid restaking tokens (LRTs) and their integration with major DeFi protocols like Aave. Kelp DAO paused operations shortly after the hack to assess the damage and coordinate with security teams. Next Steps for rsETH Collateralization According to an announcement on Kelp DAO’s official X account, the upcoming contract operations are a critical step toward restoring functionality and trust. The protocol is working directly with Aave to finalize the technical parameters for rsETH as collateral. This move signals that Kelp DAO is prioritizing the reactivation of its core value proposition: allowing users to deposit rsETH on Aave to borrow other assets. Why This Matters for Users For holders of rsETH, the resumption of collateralization is a key milestone. It could restore liquidity and utility to the token, which has traded under uncertainty since the hack. The successful integration with Aave would also demonstrate that Kelp DAO’s underlying infrastructure remains viable despite the exploit. However, the protocol has not yet disclosed the full extent of user fund recovery or whether the stolen assets have been traced. Broader Implications for DeFi Security The Kelp DAO incident is one of the largest in the restaking sector, a niche that has grown rapidly alongside Ethereum’s shift to proof-of-stake. Security experts have warned that the complexity of restaking contracts creates new attack surfaces. The fact that Kelp DAO is moving forward with Aave integration suggests confidence in its remediation efforts, but the community remains watchful for any signs of residual vulnerabilities. Conclusion Kelp DAO’s decision to resume contract operations for rsETH collateralization on Aave represents a cautious but determined step toward recovery. While the $292 million exploit has damaged user confidence, the protocol’s continued collaboration with Aave indicates a commitment to restoring functionality. The coming days will be critical in determining whether rsETH can regain its standing as a trusted collateral asset in the DeFi ecosystem. FAQs Q1: What exactly happened in the Kelp DAO hack? On June 23, 2024, an attacker exploited a vulnerability in Kelp DAO’s smart contracts, stealing approximately $292 million in various assets. The protocol paused operations to investigate and coordinate with security teams. Q2: What is rsETH and why is it important? rsETH is a liquid restaking token issued by Kelp DAO that represents staked ETH and restaked positions. It is designed to be used as collateral on platforms like Aave, allowing users to borrow other assets while earning staking rewards. Q3: Will users get their funds back after the hack? Kelp DAO has not yet confirmed the recovery of stolen funds. The current announcement focuses on resuming contract operations for rsETH collateralization, which is a separate step from fund recovery. Users should monitor official Kelp DAO channels for updates on restitution. This post Kelp DAO Moves Forward With rsETH Collateralization on Aave After $292M Exploit first appeared on BitcoinWorld .

9 May 2026, 12:14

Arbitrum DAO wins court approval to transfer $71 million ETH

🚨 New York court lets Arbitrum DAO move $71 million in ETH to Aave. This allows $ETH assets frozen since the North Korea-linked attack to shift to a DeFi protocol. 🟠 Critical data: Funds remain restricted pending a final ruling for terrorism victims. Continue Reading: Arbitrum DAO wins court approval to transfer $71 million ETH The post Arbitrum DAO wins court approval to transfer $71 million ETH appeared first on COINTURK NEWS .

9 May 2026, 12:02

Ripple (XRP) and Stellar (XLM) Will be the Next Strongest Duopoly in Financial Services

The role of blockchain technology in global payments continues to gain attention as researchers and analysts examine which networks could play a lasting part in financial infrastructure. In a recent tweet, crypto researcher SMQKE noted Ripple and Stellar as two projects positioned to become dominant forces in blockchain-based financial services, particularly in cross-border payments and correspondent banking. SMQKE argued that Ripple and Stellar could emerge as a powerful duopoly within the sector, comparing their potential influence to the dominance Visa and Mastercard maintain in traditional payment networks. The researcher stated that both blockchain protocols already share several characteristics that place them ahead in the race for institutional adoption. Ripple and Stellar will be the next strongest duopoly in financial services. Similar to VISA and Mastercard’s dominance in the payment networks, these two protocols are positioned to be the blockchain equivalents of these card issuers. Ripple and Stellar both: • Focus on… https://t.co/apPQldhVIZ pic.twitter.com/2IOfiwSpnj — SMQKE (@SMQKEDQG) May 8, 2026 Research References Shared by SMQKE To support the argument, SMQKE attached excerpts from academic and research publications discussing blockchain applications in payment systems. The highlighted sections focused heavily on Ripple and Stellar’s involvement in cross-border remittances and banking infrastructure. An excerpt explained that both Ripple and Stellar aim to improve cross-border payments with different strategies. The text noted that Ripple focuses heavily on working with banks worldwide to reduce intermediaries, enabling payments to settle quickly and at lower fees through blockchain infrastructure. The document further stated that Ripple had already established relationships with more than 100 banks globally at the time of the publication. It also explained that Stellar’s focus centered more on serving underbanked and less-developed regions by enabling cheaper access to the global economy. According to the highlighted passage, both networks use their digital assets to facilitate rapid currency conversion during international transfers. The research described how transactions can move between currencies through XRP or XLM before converting into the destination currency within seconds. Focus on Correspondent Banking Infrastructure Another section shared by SMQKE emphasized the role of Ripple and Stellar in correspondent banking systems. The research paper stated that Ripple and Stellar were among the most cited blockchain use cases for remittances and payments in existing academic literature. The publication specifically noted that only Ripple and Stellar were providing distributed ledger technology applications aimed directly at correspondent banking infrastructures. The authors added that Stellar’s correspondent banking solutions were still developing, while Ripple already possessed a well-documented history of partnerships with banks and money transfer operators. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 The paper also stated that Ripple became the primary focus of that particular research because of the amount of empirical material and institutional partnership data available at the time. Comparison to Traditional Payment Giants SMQKE used the attached research to reinforce the comparison between Ripple and Stellar and traditional payment leaders Visa and Mastercard. The post presented both blockchain protocols as infrastructure-focused networks seeking institutional relevance rather than competing solely in speculative cryptocurrency markets. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on X , Facebook , Telegram , and Google News The post Ripple (XRP) and Stellar (XLM) Will be the Next Strongest Duopoly in Financial Services appeared first on Times Tabloid .

9 May 2026, 11:40

Base’s x402 Protocol Surpasses $100M in Q1 Stablecoin Payments, Dominating AI Agent Transactions

BitcoinWorld Base’s x402 Protocol Surpasses $100M in Q1 Stablecoin Payments, Dominating AI Agent Transactions Base, the Layer 2 blockchain developed by Coinbase, has announced that its x402 protocol processed over $100 million in cumulative stablecoin payments during the first quarter of 2025. The milestone, shared via Base’s official social media channels, underscores the growing role of blockchain infrastructure in facilitating machine-to-machine payments, particularly among autonomous AI agents. The x402 Protocol and Its Role in AI Payments The x402 protocol is an open standard for AI-driven payments, designed to enable seamless, low-cost transactions between artificial intelligence agents without human intervention. By integrating stablecoins — digital assets pegged to fiat currencies like the US dollar — the protocol allows AI systems to pay for services, data, or computational resources autonomously. Base noted that more than 90% of all on-chain stablecoin transactions conducted by AI agents now occur on its network, highlighting the platform’s early lead in this emerging niche. Implications for the Crypto and AI Ecosystems This development signals a convergence of two rapidly evolving sectors: decentralized finance and artificial intelligence. The ability for AI agents to transact independently using stablecoins on a scalable, low-fee network like Base could unlock new use cases in automated trading, decentralized data marketplaces, and machine-to-machine service economies. Industry observers note that the $100 million threshold, while modest compared to total stablecoin volumes across all blockchains, represents a meaningful proof of concept for autonomous economic activity. Why This Matters for the Broader Market Base’s achievement reflects a strategic bet by Coinbase on becoming the settlement layer for AI-driven commerce. With Ethereum’s Layer 2 ecosystem expanding rapidly, competition among networks to attract AI-related transaction volume is intensifying. Base’s head start, supported by Coinbase’s user base and regulatory compliance, may provide a durable advantage as more developers build AI agents that require on-chain payment rails. The milestone also reinforces the thesis that stablecoins are becoming the default medium of exchange for programmable, automated transactions. Conclusion Base’s x402 protocol crossing $100 million in Q1 stablecoin payments marks a notable inflection point for AI agent economies. While still early, the data suggests that blockchain-based payment infrastructure is increasingly viable for autonomous systems. As both AI and crypto continue to mature, the integration of these technologies will likely deepen, with Base positioning itself at the center of this intersection. FAQs Q1: What is the x402 protocol? The x402 protocol is an open standard developed by Coinbase that enables AI agents to make autonomous payments using stablecoins on the Base blockchain. It is designed to facilitate machine-to-machine transactions without human oversight. Q2: Why is the $100 million milestone significant? It demonstrates real-world adoption of blockchain-based payments for AI agents, validating the concept of autonomous economic activity. It also shows Base’s early dominance in this niche, with over 90% of AI agent stablecoin transactions occurring on its network. Q3: How does this affect regular crypto users? While the immediate impact is on developers and AI systems, the growth of AI agent payments could lead to more efficient automated services, lower costs for decentralized applications, and new types of digital services that rely on autonomous transactions. This post Base’s x402 Protocol Surpasses $100M in Q1 Stablecoin Payments, Dominating AI Agent Transactions first appeared on BitcoinWorld .

9 May 2026, 10:29

NEAR Protocol Adds FIPS-204 Post-Quantum Keys to Network

NEAR Protocol is integrating FIPS-204 (ML-DSA), a NIST-approved post-quantum signature scheme, into its network. Users will be able to rotate their keys to quantum-safe cryptography with a single on-chain transaction.