BREAKING: $435 million has been liquidated from the cryptocurrency market in the past 12 hours.

April 24, the EtherFi Foundation proposed injecting 5,000 ETH into the rsETH Special Recovery Pool to cover collateral shortfalls, safeguard user assets, and prevent bad debt from spreading across the DeFi ecosystem. This initiative is part of the "DeFi United" joint rescue operation, with core goals to restore rsETH’s peg, stabilize the lending market, and mitigate systemic risks stemming from a recent exploit.

April 24th: Aave founder Stani Kulechov said the protocol is his “life’s work,” noting the team is fully focused on addressing the current risk event. He announced he will personally contribute 5,000 ETH to the “DeFi United” joint rescue plan, which aims to unite industry partners to cover the collateral gap, stabilize markets, and push for timely implementation of additional commitments to restore normal operations. BlockBeats reported today that Mantle—backed by crypto exchange Bybit—has proposed in a governance forum to extend a 30,000 ETH loan to Aave to backstop default risks stemming from a recent attack.

April 24th: At a governance forum hosted by crypto exchange Bybit, Mantle proposed extending a 30,000 ETH loan to Aave to backstop default risk tied to a recent exploit. Market watchers framed the move as a continuation of industry mutual aid. Bybit itself previously received multi-party liquidity support following major security breaches, and is now funneling funds to core DeFi protocols in reverse via Mantle. As platforms like Aave face collateral shortfall pressures, collaboration among top institutions is emerging as a key stabilizing mechanism for the crypto ecosystem during periods of extreme risk.

On April 24, following the KelpDAO exploit, the Arbitrum Security Council stepped in to freeze over 30,000 ETH (roughly $71 million), successfully preventing the stolen funds from being fully withdrawn. The move has, however, ignited a heated debate over the "decentralization boundary." The operation was carried out by a 12-member security council elected by token holders, who used their special authority to move the attacker’s funds to a "null address"—effectively freezing the assets. Supporters argue the intervention bought critical time for the industry, blocked further money laundering, and served as a necessary "security-first" mechanism. Critics, though, note the incident reveals how even in a so-called decentralized network, key moments can be swayed by a small group. This challenges the core principle of "code is law" and raises concerns about potential future abuses. In response, Arbitrum stated the mechanism was designed to be transparent and community-approved, acti

**On April 24, Aave teamed up with several institutions to launch the "DeFi United" rescue plan. The initiative aims to address the ~$292 million loss from the KelpDAO exploit and prevent insolvency contagion across the ecosystem.** **The attack stemmed from a LayerZero integration flaw: the hacker minted uncollateralized rsETH tokens, then borrowed ~$190 million in assets on Aave. This caused collateral distortion issues, sparking a bank run on the protocol and temporarily pushing its total value locked (TVL) to plummet by ~$10 billion.** **As of now, Lido Finance, EtherFi, and Aave founder Stani Kulechov have put forward funding proposals. Arbitrum has frozen a portion of the stolen funds, but the rest were transferred via THORChain—complicating recovery efforts. The immediate priority is a collaborative capital injection to plug the gap and stabilize the DeFi lending system.**

April 24: U.S. President Donald Trump publicly criticized geopolitical speculation, declaring, “The world has become a casino.” Yet repeated instances of “well-timed” trades have stoked market concerns over policy information leaks and potential manipulation. The latest case involves a U.S. soldier linked to the operation targeting Venezuelan President Nicolás Maduro. Hours before Trump announced the mission, the soldier placed bets totaling more than $33,000 on the prediction market Polymarket, ultimately netting over $400,000 in profits. He has since been arrested by U.S. authorities, with the case labeled a classic example of “prediction market insider trading.” Of greater concern is the “collective sprint” in commodity markets. At several key junctures, massive trades in crude oil and stock index futures occurred minutes to hours before Trump announced policy shifts (e.g., ceasefires, delayed strikes). Examples include: - On April 7 at ~3:45 p.m. Eastern Time, 15 million ba