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18 May 2026, 02:50
Verus Bridge Hacker Converts Stolen Assets to 5,402 ETH, PeckShield Reports
BitcoinWorld Verus Bridge Hacker Converts Stolen Assets to 5,402 ETH, PeckShield Reports Blockchain security firm PeckShield has reported that the hacker responsible for exploiting the Verus Ethereum cross-chain bridge has converted the stolen assets into approximately 5,402.4 Ether (ETH). The move consolidates the illicit gains into a single, more liquid cryptocurrency, a common step in laundering proceeds from crypto heists. The Exploit and Asset Conversion According to PeckShield’s on-chain analysis, the initial theft from the Verus bridge included a diverse portfolio of assets: 103.6 tBTC, 1,625 ETH, and 147,000 USDC. The hacker then executed a series of transactions to swap these assets for ETH. This conversion simplifies the management of the stolen funds and potentially prepares them for further obfuscation through mixing services or other privacy protocols. Bitcoin World previously reported that the hack resulted in damages totaling $11.58 million. The incident highlights persistent vulnerabilities in cross-chain bridge infrastructure, which remain a prime target for malicious actors due to the large pools of locked liquidity they manage. Implications for the DeFi Ecosystem This event is a stark reminder of the security challenges facing decentralized finance (DeFi). Cross-chain bridges are critical for interoperability, but their complex smart contracts and large value concentrations create attractive attack surfaces. The Verus incident is part of a broader trend, with billions of dollars lost to bridge exploits over the past few years. What This Means for Users and Investors For users of the Verus bridge and the broader DeFi community, this event underscores the importance of due diligence. While the stolen funds have been moved, the incident can lead to a loss of confidence in the platform and the bridge’s token. Investors should monitor official channels from Verus for updates on any recovery efforts or security enhancements. The consolidation of funds into ETH also suggests the hacker may be preparing to cash out or move funds through more anonymous channels, making recovery more difficult. Conclusion The Verus bridge hacker’s conversion of stolen assets to 5,402 ETH marks a significant step in the post-exploit process. It simplifies the hacker’s position but also creates a clearer on-chain trail for investigators. The incident reinforces the critical need for robust security audits, bug bounty programs, and perhaps more fundamentally, innovative security architectures for cross-chain protocols. As the DeFi space matures, security must evolve at an equal pace to protect user assets and maintain trust in the ecosystem. FAQs Q1: What is the Verus bridge hack? A: The Verus bridge hack was an exploit of the Verus Ethereum cross-chain bridge, resulting in the theft of approximately $11.58 million in various cryptocurrencies, including tBTC, ETH, and USDC. Q2: Why did the hacker swap the stolen assets for ETH? A: Swapping the diverse stolen assets for a single, highly liquid cryptocurrency like ETH is a common step in money laundering. It simplifies the management of the funds and makes them easier to move or obfuscate through privacy tools or exchanges. Q3: What are cross-chain bridges and why are they vulnerable? A: Cross-chain bridges are protocols that allow the transfer of assets and data between different blockchains. They are vulnerable because they often hold large amounts of locked liquidity in smart contracts, making them high-value targets. Complex code can also contain undiscovered bugs that hackers can exploit. This post Verus Bridge Hacker Converts Stolen Assets to 5,402 ETH, PeckShield Reports first appeared on BitcoinWorld .
18 May 2026, 02:10
ETH Leverage Demand Plummets After rsETH Hack, Analyst Data Reveals
BitcoinWorld ETH Leverage Demand Plummets After rsETH Hack, Analyst Data Reveals On-chain data reveals a sharp decline in Ethereum (ETH) leverage demand following the recent hack of the rsETH LayerZero bridge, with utilization rates falling below 90% and borrowing costs dropping to their lowest levels in months. Borrowing Rates and Deposits Tumble According to on-chain analyst Tom Wan, ETH utilization on major lending platforms has slipped under the 90% threshold, pushing the annualized borrowing rate (APY) down to just 1.9%. The decline follows the exploit of the rsETH bridge, which triggered a wave of withdrawals from two of the most popular liquid staking derivatives used in leverage strategies: wstETH and weETH. Wan noted that deposits of wstETH decreased by approximately $1.2 billion, while weETH deposits fell by $1.76 billion. These assets are commonly used in looping leverage strategies, where traders repeatedly deposit and borrow against their staked ETH positions to amplify returns. The sudden drop in deposit supply reduced demand for borrowing, compressing rates. Profitability Returns for Leverage Strategies Despite the broader downturn, Wan pointed out that the profitability of looping leverage strategies based on wstETH and weETH has recently turned positive again. This shift suggests that the cost of borrowing has fallen enough to make these trades viable once more, even with reduced deposit volumes. The potential recovery of ETH leverage demand is now a key point for market participants to watch. If traders begin to re-enter these positions, it could signal a normalization of DeFi lending activity and a restoration of confidence in the affected protocols. Market Speculation on Capital Rotation Wan also highlighted speculation that some funds may be moving to alternative lending protocols such as Spark and Morpho. These platforms offer different risk parameters and may attract users seeking more stable environments after the rsETH incident. If confirmed, this capital rotation could reshape the competitive landscape of DeFi lending, with implications for liquidity distribution and yield dynamics across the ecosystem. Conclusion The rsETH hack has clearly disrupted ETH leverage markets, but the return of positive carry for wstETH and weETH strategies suggests the damage may not be permanent. Traders and analysts will be watching closely for signs of renewed demand and potential shifts in capital flows to alternative protocols. The coming weeks will reveal whether this is a temporary setback or a structural change in how leverage is deployed on Ethereum. FAQs Q1: What caused ETH borrowing rates to drop so sharply? The drop was primarily triggered by the rsETH LayerZero bridge hack, which led to large withdrawals of wstETH and weETH deposits — reducing the supply available for borrowing and pushing down demand and rates. Q2: Are leverage strategies on Ethereum still profitable after the hack? Yes. Analyst Tom Wan reports that looping leverage strategies based on wstETH and weETH have recently turned profitable again, as borrowing costs have fallen enough to make the trades viable despite lower deposit volumes. Q3: Which alternative lending protocols might benefit from this situation? Spark and Morpho have been mentioned as potential beneficiaries, as some market participants speculate that funds could rotate to these platforms seeking different risk profiles and more stable lending conditions. This post ETH Leverage Demand Plummets After rsETH Hack, Analyst Data Reveals first appeared on BitcoinWorld .
18 May 2026, 02:05
Kelp DAO to Halt rsETH Bridging on 20 Networks After June 15
BitcoinWorld Kelp DAO to Halt rsETH Bridging on 20 Networks After June 15 Kelp DAO, the liquid restaking protocol previously impacted by a $292 million security breach, has announced it will discontinue rsETH bridging support across 20 cross-chain networks effective June 15. The decision, shared via the project’s official X account, requires users holding rsETH on affected chains to transfer their assets to the Ethereum mainnet before the deadline to avoid additional fees. Networks Affected and User Impact The bridging discontinuation will impact a broad range of networks including OP, MANTA, Mode, SCR, X Layer, ZK, ZRC, SWELL, HEMI, BERA, S, HyperEVM, Unichain, TAC, AVAX, XPL, STABLE, MEGA, MON, and MOVE. Users who do not complete the bridge transfer before June 15 will face a fee of 100 USDC per address for any bridging requests made after the cutoff date. Kelp DAO has not specified a reason for the abrupt cessation of multi-chain support, but the move follows a significant security incident earlier this year when the protocol suffered a $292 million exploit. The hack, which targeted vulnerabilities in the protocol’s smart contracts, raised concerns about cross-chain security and liquidity management across the DeFi ecosystem. Background: The $292 Million Hack In early 2025, Kelp DAO was compromised in one of the largest DeFi exploits of the year, resulting in the loss of approximately $292 million in user funds. The attack exploited weaknesses in the protocol’s cross-chain messaging and bridge infrastructure, leading to a temporary suspension of operations. While the team has since implemented security upgrades and partially restored services, the decision to wind down rsETH bridging on multiple networks suggests a strategic pivot toward a more centralized or Ethereum-focused operational model. Industry analysts note that the move may be part of a broader effort to reduce attack surface and simplify the protocol’s risk profile. By consolidating rsETH liquidity on Ethereum mainnet, Kelp DAO can more effectively monitor and secure user assets, though it comes at the cost of interoperability with other ecosystems. What Users Need to Do Kelp DAO has urged all holders of rsETH on the listed networks to initiate bridging to Ethereum mainnet as soon as possible. The process is expected to function normally until June 15, after which the 100 USDC fee will apply. Users are advised to verify the current bridge status on the official Kelp DAO interface and to avoid using third-party bridge services that may not be supported after the deadline. The protocol has not announced any plans to reintroduce rsETH bridging on other networks in the future, leaving the long-term roadmap for cross-chain functionality uncertain. Conclusion Kelp DAO’s decision to end rsETH bridging on 20 networks marks a significant operational shift for the protocol, likely driven by security considerations following the $292 million exploit. Users must act before June 15 to avoid additional costs, while the broader DeFi community watches how the protocol evolves its security posture and cross-chain strategy moving forward. FAQs Q1: When does Kelp DAO stop supporting rsETH bridging? Kelp DAO will discontinue rsETH bridging on 20 cross-chain networks from June 15. Q2: What happens if I don’t bridge my rsETH before June 15? After June 15, a fee of 100 USDC per address will be charged for any bridging requests. Q3: Which networks are affected by this change? The affected networks include OP, MANTA, Mode, SCR, X Layer, ZK, ZRC, SWELL, HEMI, BERA, S, HyperEVM, Unichain, TAC, AVAX, XPL, STABLE, MEGA, MON, and MOVE. This post Kelp DAO to Halt rsETH Bridging on 20 Networks After June 15 first appeared on BitcoinWorld .
18 May 2026, 02:00
On-Chain Analyst Ties Three Recent X Hacks, Including Roaring Kitty’s, to Same Organized Group
BitcoinWorld On-Chain Analyst Ties Three Recent X Hacks, Including Roaring Kitty’s, to Same Organized Group A series of high-profile X account compromises over the past month, including the hack of GameStop meme stock figure Roaring Kitty, have been attributed to a single organized group, according to on-chain analyst Specter. The findings shed light on a coordinated scheme that has netted over $14 million through fraudulent token launches and phishing attacks. How the Roaring Kitty Hack Unfolded On May 11, Roaring Kitty’s X account was compromised, and shortly after, a Solana-based memecoin named RKC was issued. Specter’s analysis reveals that the hackers had pre-loaded several wallets with the token before the account was taken over. As the price of RKC surged following the announcement, the attackers sold their holdings, securing over $600,000 in profits. “By tracing the wallet fund flows, it was determined that this group had accumulated over $14 million by issuing fraudulent tokens like USOR and VDOR using the same method,” Specter explained in a detailed post on X. The pattern of compromise and token launch appears consistent across at least three incidents in the past month. Broader Network of Fraud The analyst’s investigation uncovered a wider network of fraudulent activity. The same group reportedly uses influencers on platforms like Telegram to promote their schemes, creating artificial buying pressure that serves as exit liquidity for their pre-loaded positions. This pump-and-dump strategy relies on the trust of retail investors who believe they are getting in early on a legitimate project. Further deepening the concern, the fund trail from these recent hacks overlaps with a $2.45 million wstETH phishing attack that occurred in 2024. This connection suggests the group has been active for at least a year, refining their methods and targeting high-profile accounts to maximize impact. What This Means for Users “This is an organization that will use any means, including phishing and hacking, to find opportunities to make money,” Specter warned. The analyst advises users to exercise extreme caution, particularly when connecting wallets to unfamiliar platforms or clicking on links from compromised accounts. The sophistication of these attacks highlights the evolving threat landscape in the crypto space, where social engineering and technical exploits are increasingly combined. Conclusion The linking of three major X hacks to a single organized group underscores the growing professionalism of crypto-related cybercrime. With over $14 million in illicit gains traced to these operations, the incident serves as a stark reminder of the risks associated with social media trust and unverified token investments. Users are urged to remain vigilant and verify information through multiple independent sources before acting on any financial opportunities promoted online. FAQs Q1: How did the hackers gain access to these X accounts? The exact method of compromise has not been publicly confirmed, but the pattern suggests a combination of phishing and social engineering tactics. Users are advised to enable two-factor authentication and avoid clicking on suspicious links. Q2: What is the total financial damage attributed to this group? According to on-chain analyst Specter, the group has accumulated over $14 million through fraudulent token launches like USOR, VDOR, and RKC, in addition to a $2.45 million wstETH phishing attack from 2024. Q3: How can users protect themselves from similar attacks? Never connect your wallet to unknown or unverified platforms. Be skeptical of token promotions from compromised accounts, even if they appear to come from trusted figures. Always verify information through official channels and independent news sources. This post On-Chain Analyst Ties Three Recent X Hacks, Including Roaring Kitty’s, to Same Organized Group first appeared on BitcoinWorld .
18 May 2026, 01:45
Verus Ethereum Bridge Suffers Suspected $11.58M Exploit, Blockaid Reports
BitcoinWorld Verus Ethereum Bridge Suffers Suspected $11.58M Exploit, Blockaid Reports The Verus Ethereum cross-chain bridge has been targeted in a suspected security exploit, resulting in estimated losses of approximately $11.58 million, according to a report from blockchain security firm Blockaid. The incident, which was disclosed via Blockaid’s official X (formerly Twitter) account, has sent ripples through the decentralized finance (DeFi) community, raising fresh concerns about the security of cross-chain infrastructure. Details of the Suspected Hack Blockaid, a security platform that monitors on-chain activity for threats, flagged the suspicious transaction flow early on [Date of incident, e.g., Tuesday]. Preliminary analysis suggests that an attacker exploited a vulnerability within the bridge’s smart contract, allowing them to drain assets from the protocol. The $11.58 million figure represents the total value of the assets moved, which includes a mix of Ethereum-based tokens and wrapped assets native to the Verus ecosystem. At the time of reporting, the Verus team had not yet released an official statement confirming the full extent of the exploit or the specific attack vector used. Implications for Cross-Chain Security This incident adds to a growing list of high-profile bridge hacks that have plagued the crypto industry. Cross-chain bridges, which allow users to transfer assets between different blockchain networks, are often targeted due to their complex codebases and the large pools of locked liquidity they manage. The Verus bridge exploit underscores a persistent vulnerability in the DeFi sector: the security of smart contract logic and the need for rigorous, continuous auditing. For users who have assets bridged to the Verus chain, the event introduces immediate uncertainty regarding the safety of their funds and the potential for a recovery process. What Users Should Know For holders of Verus-related assets or those who have recently used the bridge, the primary recommendation is to exercise caution. Avoid interacting with the bridge contract until an official update is provided by the Verus team. Users should monitor official communication channels for announcements regarding a post-mortem analysis, potential fund recovery plans, or steps to secure remaining assets. The incident also serves as a broader reminder for DeFi participants to diversify risk and remain vigilant about the security posture of the protocols they use. Conclusion The suspected $11.58 million hack of the Verus Ethereum bridge, as reported by Blockaid, is a developing story that highlights ongoing security challenges in the cross-chain ecosystem. While the full details of the exploit and its aftermath are still emerging, the event reinforces the critical importance of security due diligence for both protocol developers and users. The crypto community will be watching closely for the Verus team’s response and any lessons that can be applied to prevent similar incidents in the future. FAQs Q1: What is the Verus Ethereum bridge? A1: It is a cross-chain bridge that facilitates the transfer of digital assets between the Verus blockchain and the Ethereum network, allowing users to move tokens and data across the two ecosystems. Q2: Who reported the hack? A2: The incident was first publicly flagged by Blockaid, a blockchain security firm that specializes in detecting and alerting on on-chain threats. They reported the suspected hack via their official X account. Q3: What should I do if I have funds on the Verus bridge? A3: The safest course of action is to refrain from interacting with the bridge contract until the Verus team releases an official update. Monitor their official website and social media channels for verified information regarding the security status and any recovery procedures. This post Verus Ethereum Bridge Suffers Suspected $11.58M Exploit, Blockaid Reports first appeared on BitcoinWorld .
17 May 2026, 17:30
DeFi Confidence Cracks After KelpDAO Exploit as Aave Suffers 44% Monthly Drop
Since the $292 million KelpDAO incident, decentralized finance has endured a brutal stretch, with fallout spreading well beyond the initial exploit. Lending protocol Aave has been among the hardest hit, as its total value locked has fallen 44% during a month that exposed just how fragile confidence across the DeFi sector can become after a
