Iranian Speaker: War Could Restart at Any Time

April 19th: Andre Cronje, co-founder of Sonic Labs and founder of Flying Tulip, said the team is still investigating the L0/rsETH incident. Initial reports suggest a private key leak or configuration error may have led to ~$200 million in rsETH being stolen. The stolen rsETH was then deposited into Aave to borrow ETH (given rsETH’s low liquidity). The position is technically collateralized; even without collateral, Aave’s token and safety module act as the first line of defense against defaults. Aave has no mechanism to reimburse users for losses, so extreme cases could trigger a "bank run." However, Aave currently holds ~$7 billion worth of ETH, compared to ~$100 million in withdrawal volume and $17 million in PUT exposure—limiting the overall impact. While the above is just our initial assessment, protecting user PUT liquidity remains our top priority. As such, we’ve withdrawn all ETH from Aave to our self-contained contract, as Aave’s available liquidity has fallen below our m

April 19: Curve founder Michael Egorov posted a message, noting: “Hope Aave can tackle this issue. Kelp DAO lost ~$292M in a hack, which caused a default on Aave—exactly the risk tied to the widely used ‘non-segregated lending’ model. This model offers strong scalability but carries higher risk, so risk management is key (Aave has historically excelled at this).” One solution is a fully segregated model, like Curve Finance’s pools. Another is a hybrid model—more complex but feasible. That said, the market hasn’t fully grasped the benefits of these options yet. Aave’s v4 hub-and-spoke model could be a step toward a semi-segregated, more secure setup.

On-chain data from April 19 indicates that Aave’s multi-signature guardian has frozen WETH in the lending market.

On April 19th, Marc Zeller—founder of the Aave Chan Initiative (ACI), a contributor to the Aave ecosystem—announced the immediate termination of the AaveChan Frontier plan. Zeller stated: “For years, I’ve run an ETH staking node on behalf of the Aave DAO. Given current circumstances, I will shut down all validators and return all ETH to the Aave DAO, where it can be used to protect wETH depositors if needed. I’m also forfeiting any potential rewards tied to this service to minimize impact on users. While this may help in a limited way, we believe it’s the right move under the current situation. I’ll post more details on the Aave governance forum later.”

April 19: Bankless co-founder Ryan Sean Adams posted that crypto hack frequency has hit an all-time high, linking the surge to AI giving hackers "dark superpowers." "Defenses need to catch up immediately—we’re running out of time," he added. Earlier reports note Kelp DAO was hacked, losing roughly $292 million. The DAO issued a statement identifying suspicious cross-chain activity tied to rsETH, then paused the rsETH contract on the mainnet and multiple Layer 2 chains. It’s now conducting a root cause analysis alongside LayerZero, Unichain, and security experts.

April 19 — Per data from LookOnChain, one address holds approximately 8.02 billion ASTEROID tokens, having held them for over 580 days, with current unrealized gains of roughly $2.6 million.