The Kelp DAO exploit has escalated: blockchain trackers show the attacker moved roughly $175 million in Ether after an earlier $290 million theft, signaling the likely start of laundering activity. On-chain analysts and security teams are tracing flows, monitoring splits, and hunting for mistakes that could lead to recovery.

This episode breaks down the unfolding investigation and the broader implications for DeFi security — from smart contract and governance gaps to the urgent need for stronger audits, continuous monitoring, and clearer risk disclosures. The central message: the space must respond with better practices to rebuild trust and resilience.