Andre Cronje: Approximately $200 million worth of rsETH may have been stolen due to a leaked private key or misconfiguration. ETH has been withdrawn from Aave to ensure liquidity.

According to Mars Finance, on April 19th, Andre Cronje, co-founder of Sonic Labs and founder of Flying Tulip, stated: "We are still investigating the L0/rsETH incident. Initial reports indicate that a possible private key leak or misconfiguration led to the theft of approximately $200 million worth of rsETH. Subsequently, this rsETH was deposited into Aave for lending out ETH (due to insufficient rsETH liquidity). This position was technically collateralized; even without collateral, Aave's tokens and security modules themselves are the first line of defense against bad debts. Aave does not have a mechanism to subsidize user losses, so in extreme cases, it could escalate into a 'bank run.' However, considering that Aave currently has approximately $7 billion worth of ETH, compared to the approximately $100 million in withdrawals and the $17 million exposure in PUTs, the overall impact of this situation is limited. Nevertheless (this is only to illustrate our judgment), our primary goal remains to ensure the liquidity of users' PUTs. Therefore, we have withdrawn all ETH from Aave to our own encapsulation contract because Aave's available liquidity has fallen below our minimum threshold."