Kelp DAO lost $292 million to an exploit, according to a CoinDesk report, leaving wrapped ether from the restaking protocol stranded across 20 different blockchains.

The attack drained assets from the protocol at the center of Ethereum's restaking ecosystem. CoinDesk, which broke the story, reported the figure and the unusual aftermath: the stolen or frozen wrapped ether is now scattered across 20 chains rather than sitting in a single pool.

What happened to Kelp DAO?

Kelp DAO is a restaking protocol built around wrapped ether products. An exploit hit the protocol and extracted roughly $292 million in value. The immediate consequence isn't just the headline loss — it's operational. Wrapped ether tied to the protocol can't move freely, because the affected assets sit across 20 separate chains.

That sprawl complicates any recovery. Cross-chain assets require coordinated action on each network where they're stranded, and every chain adds a step for investigators, the Kelp team and any exchange that might freeze deposits.

Why does the 20-chain detail matter?

Wrapped tokens by design live on multiple networks. When an exploit scatters them across 20 of them at once, the practical work of tracing, freezing or recovering funds multiplies. Each chain has its own infrastructure, bridges and validator sets.

For users, the risk is straightforward. Wrapped ether that can't be redeemed or moved is effectively illiquid, whatever its notional value. The $292 million figure covers the exploit size; it doesn't guarantee what portion of user funds is recoverable.

What comes next?

Expect Kelp DAO to publish a post-mortem with the attack vector, and expect blockchain-analytics firms to trace the stranded assets chain by chain. The recovery timeline will depend on how quickly the team and its partners can coordinate across all 20 networks.