# Crypto majors fall then rebound as Iran tensions escalate; BTC at $75.4k.ETFs see $1.4B in inflows on the week, 2nd biggest week of year.

*web3 · news · 2026-04-20 · Decrypt*

## Key points

- Kelp DAO's LayerZero bridge exploit minted unbacked rsETH, leaving Aave with $196M in bad debt.
- The exploit caused Aave TVL to drop 25% in one day and triggered a DeFi-wide bank run.
- DeFi protocols whitelisted liquid restaking tokens like rsETH as ETH-equivalent collateral, exposing systemic risk.
- Aave, SparkLend, Fluid, Upshift, and Lido all froze rsETH exposure across over 20 chains after the exploit.

**Companies:** Coinbase, Aave, Vercel
**Countries:** Iran, United States

[Read the full story on Decrypt](https://decrypt.co/364875/morning-minute-defis-future-in-question-after-292m-kelpdao-exploit)

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Canonical: https://newsio.io/n/ff4a47ca-31ed-47ad-bb50-d7851ea1becd/crypto-majors-fall-then-rebound-as-iran-tensions-escalate-btc-at-75-4k-etfs-see
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