Safe Wallet module exploit drains $7.8M in rsETH on Ethereum.
Security & Exploits ·
A vulnerability in Safe Wallet's module infrastructure resulted in approximately $7.8 million in rsETH being drained on Ethereum. The incident represents one of several security challenges affecting rsETH, Kelp DAO's liquid restaking token that aggregates ETH and liquid staking derivatives for deployment through EigenLayer across multiple blockchains.
rsETH gained prominence as a composable yield-bearing asset across DeFi platforms but has faced significant infrastructure risks tied to cross-chain messaging. The token's ecosystem experienced a major disruption in April 2026 when attackers exploited LayerZero's bridge architecture to release approximately 116,500 rsETH—worth around $292 million at the time—without burning equivalent tokens on the source chain, creating an 18% shortfall in backing. That incident triggered protocol-wide freezes at lending platforms and sparked coordinated recovery efforts across multiple DeFi projects.
The Safe Wallet module exploit follows this pattern of bridge and infrastructure vulnerabilities affecting restaking tokens. Recovery status and whether the drained rsETH has been recovered or remains at risk are not yet disclosed in available reports.