The liquid restaking protocol EtherFi has announced the temporary suspension of several key services following security concerns involving the Kelp rsETH incident. In an official statement released on April 19, 2026, the team confirmed that while its rsETH holdings are not currently facing direct exposure, precautionary measures have been implemented to safeguard user capital. These measures include the freezing of cross-chain bridging via LayerZero and the halting of deposit and withdrawal functions for several major asset vaults.
Emergency Measures and Protocol Freezes
To mitigate potential contagion risks, EtherFi has deactivated the LayerZero cross-chain bridging functionality for its Liquid Staking Tokens (LSTs), specifically weETH and eETH. This move aims to prevent any unauthorized movement of assets until the root cause of the vulnerabilities identified in the Kelp rsETH ecosystem is fully understood. Furthermore, the protocol has taken the following actions:
- The suspension of Teller contracts for Liquid ETH, BTC, and USD products.
- A complete block on the LayerZero OFT (Omnichain Fungible Token) bridging paths for supported assets.
- The temporary freezing of deposit and withdrawal functions for sETHFI and eBTC.
These steps are intended to isolate the EtherFi ecosystem from external smart contract risks while security audits are conducted in real-time.
Security Coordination and Risk Assessment
The EtherFi team is reportedly working alongside external security partners to monitor the situation. While the Liquid vault remains under observation, the developers emphasized that the primary goal is to ensure the integrity of the ETH, BTC, and USD pools. The suspension of the Teller contracts is a critical step, as these contracts manage the interaction between user deposits and the underlying yield-generating strategies.
As a precautionary measure, the LayerZero cross-chain bridging function for weETH and eETH has been suspended until the root cause of the Kelp rsETH incident is clarified.
The protocol has not yet provided a specific timeline for the restoration of services, noting that updates will be shared as more details regarding the Kelp rsETH incident are confirmed. The DeFi community remains on high alert as cross-chain infrastructure often presents a significant attack vector during multi-protocol security events.
As of the current report, EtherFi continues to monitor on-chain data to ensure that no further anomalies affect its TVL (Total Value Locked). Users are advised to follow official communication channels for the latest developments regarding the resumption of weETH and eETH transfers. The incident highlights the ongoing challenges of interoperability within the Ethereum restaking landscape and the importance of rapid emergency response protocols.
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