Morpho CEO: KelpDAO Incident Has Limited Impact on the Platform, But Second-Order Effects May Exist
**April 19 Update: Morpho CEO Comments on Recent KelpDAO Incident**
Morpho Co-Founder and CEO Paul Frambot outlined key details about the protocol’s stance on the latest KelpDAO incident in a post today:
- Morpho’s smart contract security is still operating as expected.
- The protocol’s exposure is limited, with curators having taken prompt preventive measures.
- Only ~$1 million worth of ETH has been borrowed against rsETH, across two isolated markets.
- Of the ~500 Morpho Vaults (with deposits over $10,000), just 2 are involved in these markets—final impact will depend on how the situation unfolds.
- Morpho’s fully isolated market design means all other Vaults remain unaffected.
While the direct impact on Morpho is limited, secondary effects may still emerge due to broader ecosystem exposure. Exercise caution.
3 minutes ago
Morpho: Pause of MORPHO's OFT Cross-Chain Bridge on Arbitrum Pending Root Cause Analysis of rsETH Incident
On April 19th, Morpho announced that shortly after the KelpDAO and LayerZero incidents, it has proactively suspended the MORPHO token’s OFT cross-chain bridge on Arbitrum.
Cross-chain functionality on Arbitrum will remain suspended until the root cause of the rsETH incident is fully understood.
3 minutes ago
Current mainstream CEX and DEX funding rates show that BTC and ETH have been in a continuous bearish range, with market sentiment remaining gloomy.
April 19th — Per HTX market data, Bitcoin (BTC) is currently trading at $75,376.87 with a 2.26% 24h drop; Ethereum (ETH) is at $2,325.41, down 3.51% over the same period.
Coinglass data shows funding rates on major centralized exchanges (CEXs) signal a broad bearish outlook for both BTC and ETH, with market sentiment remaining subdued.
Notably, BTC funding rates on most top platforms (including Binance) are negative, meaning shorts are paying ongoing fees to longs. Rates across platforms fall within a broad bearish range. For ETH, Binance and similar exchanges see rates in the -0.007% to -0.009% range—deeper in negative territory. While some platforms show slight positive rates, none exceed 0.005%, underscoring stronger overall short pressure on ETH than BTC.
BlockBeats Note: Funding rates are fees set by crypto exchanges to align perpetual contract prices with underlying asset prices. They facilitate fund transfers between long and short traders; exchanges do not collect thes
3 minutes ago
The cryptocurrency industry has lost over $600 million in April, with KelpDAO and Drift hacks both exceeding $280 million.
April has emerged as one of the cryptocurrency industry’s most devastating months this year, with losses from hacks exceeding $600 million across at least 13 protocols and platforms. Two major incidents—Drift and KelpDAO—account for over $280 million in losses, and several high-profile attacks are linked to a North Korea-affiliated hacker group. Key events follow:
- **April 1**: Drift Protocol, Solana’s largest decentralized perpetual contract platform, was hacked for ~$285 million. On-chain activity traced to March 11 (when the attacker withdrew 10 ETH from Tornado Cash) spanned nearly 3 weeks; the exploit took ~12 minutes, with most funds cross-chained to Ethereum via Circle CCTP within hours. It’s Solana’s second-largest security event, behind the 2022 $326 million Wormhole cross-chain bridge hack.
- **April 13**: Hyperbridge, a blockchain interoperability protocol, was breached via a cross-chain proof verification vulnerability, losing ~$2.5 million.
- **April 16**: Two hack
3 minutes ago
After the KelpDAO hack, protocols such as Ethena have temporarily suspended the LayerZero OFT cross-chain bridge.
On April 19, following an attack targeting KelpDAO’s rsETH via the LayerZero OFT cross-chain bridge (resulting in losses of ~116,500 rsETH, valued at roughly $292 million), multiple protocols have taken steps to mitigate potential risks by temporarily pausing related functions or markets.
Among these, protocols including Ethena, Lombard, Euler Labs, TRON DAO, ApeCoin/ApeChain, ether.fi, mETH Protocol, Solv Protocol, MOCA Foundation, and River have suspended the LayerZero OFT cross-chain bridge. They’ve emphasized they have no direct exposure to rsETH, user assets are secure, and the suspensions are precautionary measures with expectations of short-term recovery.
Additionally, protocols like Aave V3/V4, SparkLend, Lido, and Fluid have chosen to freeze rsETH-related markets or treasuries—without impacting the bridge functionality suspensions.
3 minutes ago
Although Bitcoin has been designated by Iran for payment of the Hormuz Strait toll fee, actual settlement is still primarily in stablecoins
April 19, per Cointelegraph: Iran has designated Bitcoin for settling oil transit fees in the Strait of Hormuz, though sources familiar with the matter note most funds still use stablecoins.
As previously reported by BlockBeats (citing the Financial Times on April 8), Iran will require shipping companies to pay cryptocurrency (Bitcoin)-denominated transit fees for oil tankers passing through the Strait of Hormuz during a two-week ceasefire to maintain control of the waterway.
Hamid Hosseini, spokesperson for Iran’s Oil, Gas, and Petrochemical Products Exporters’ Union, stated each tanker must email cargo details to Iranian authorities. After Iran completes its assessment, it will notify the vessel of the transit fee amount—**which must be paid in Bitcoin**.
“Once the email is received and Iran’s evaluation is done, the ship has seconds to make the Bitcoin payment to ensure it cannot be traced or confiscated amid sanctions,” Hosseini said.
3 minutes ago
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