Andre Cronje: Around $200 million worth of rsETH was stolen either due to a private key leak or a misconfiguration. The stolen funds have been withdrawn from Aave to protect liquidity

BlockBeats News, April 19th, Sonic Labs co-founder and Flying Tulip founder Andre Cronje stated: "We are still investigating the L0/rsETH incident. Initial reports indicate that it may be a private key leak or a configuration error, resulting in approximately $200 million worth of rsETH being stolen. Subsequently, this rsETH was deposited into Aave for borrowing ETH (due to rsETH's lack of liquidity). The position is technically collateralized; even without collateral, Aave's token and safety module serve as the first line of defense against defaults."

Aave does not have a mechanism to reimburse users for losses, so in extreme cases, it could potentially lead to a "bank run." However, considering Aave currently holds around $7 billion of ETH, compared to approximately $100 million in withdrawal volume and a $17 million exposure via PUT, the overall impact of this situation is limited.

Nevertheless (the above is only to illustrate our assessment), our top priority has always been to safeguard user PUT liquidity. Therefore, we have withdrawn all ETH from Aave to our self-contained contract, as Aave's available liquidity has fallen below our minimum threshold."