The KelpDAO hack, which resulted in a $290 million loss in total value for decentralized finance (DeFi), has been linked to North Korea's Lazarus Group. The attack targeted infrastructure used in LayerZero's verification stack, not a smart contract bug, but a single-verifier setup, which left a liquid staking token issued by Kelp DAO unbacked. The largest DeFi lending market, Aave, experienced $8.45 billion in outflows over 48 hours, while broader DeFi TVL fell into the mid-$80 billion range. This was a sharp repricing of risk, not as destructive as some are making out. However, the losses are significant but unlikely to be existential, with many recourses used to protect the protocol. The biggest issue will be the impact on risk premiums that are assigned to DeFi.