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KelpDAO exploit creates $236M bad debt risk for AAVE, Ethereum drops 3%

KelpDAO exploit creates $236M bad debt risk for AAVE, Ethereum drops 3%

The KelpDAO exploit has created a $236 million bad debt risk for AAVE, a major DeFi lending platform. The incident has heightened market volatility and investor concern, contributing to a 3% drop in Ethereum's price on April 19, 2026. The exploit underscores ongoing security vulnerabilities within DeFi protocols and their potential to impact broader crypto markets.

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