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Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Kelp Protocol Exploit: On Saturday, Kelp suffered a $293 million drainage via a cross-chain exploit in its rsETH adapter bridge. Security firm Cyvers reported that over $250 million has already been laundered through Tornado Cash.

2. Circle’s USDC Bridge: Circle released a new "USDC Bridge" on Friday built on its Cross-Chain Transfer Protocol (CCTP). It uses a burn-and-mint mechanism across 17 EVM-compatible chains.

3. Tether’s Recovery Plan: Tether announced a $150 million recovery program on Thursday, providing a $127.5 million injection to restore user balances for Drift Protocol.

4. 💡Feature of the Day - Zonda's $334M Bitcoin Is Stuck: Zonda CEO Przemysław Kral confirmed that 4,500 BTC (approx. $334 million) is currently inaccessible because the private keys are held by founder Sylwester Suszek, who has been missing since 2022.

   
   All this and more in today’s headlines!

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📰 News Highlights:

Kelp’s $293M Exploit [Source][Source][Source][Source]

Kelp’s $293 million drainage on Saturday is a masterclass in why "composability" in DeFi is a double-edged sword. Security firm Cyvers identified a cross-chain exploit in the rsETH adapter bridge that forced platforms like Aave to freeze markets immediately.

With over $250 million already laundered through Tornado Cash into Ether, this incident pushes Q1 2026 crypto losses to a staggering $482 million. It is a grim reminder that even the most hyped restaking protocols are only as strong as their weakest bridge.

Meanwhile, Drift Protocol’s $280 million exploit in April adds a layer of spy-movie drama to the industry’s security woes. The team admitted that suspected North Korean hackers spent months infiltrating their ranks after a chance meeting at a major crypto conference.

By deploying malware on developer machines, these state-affiliated actors proved that social engineering is just as lethal as code exploits. The deliberate, long-term nature of this attack suggests that decentralized exchanges are now primary targets for high-level geopolitical theft.

Circle’s New USDC Bridge [Source][Source][Source]

Circle just rolled out its "USDC Bridge" on Friday, aiming to fix the clunky, fragmented mess of cross-chain stablecoin transfers. Built on the existing Cross-Chain Transfer Protocol (CCTP), this interface uses a native burn-and-mint mechanism to eliminate the need for risky wrapped assets.

It currently supports 17 EVM-compatible chains including Monad and Polygon, with gas fees handled automatically to lower the barrier for beginners. While the tech is a step forward for interoperability, the timing feels like a desperate attempt to polish a reputation currently under fire.

The launch is overshadowed by a class action lawsuit filed on Wednesday by law firm Mira Gibb, representing over 100 members. The plaintiffs allege negligence after Circle failed to freeze $230 million in USDC stolen during the Drift Protocol hack.

Despite the CCTP facilitating hundreds of millions in daily volume, the lawsuit argues that Circle's refusal to intervene during the six-hour laundering window constitutes aiding and abetting. This legal battle highlights the growing tension between Circle’s "decentralized" aspirations and its centralized responsibilities.

Tether’s $150M Drift Rescue [Source][Source][Source]

Tether is playing the white knight, announcing a $150 million recovery program on Thursday to salvage what is left of Drift Protocol. The plan involves a $127.5 million injection from Tether, structured to restore user balances as the exchange resumes trading operations.

Crucially, Drift is ditching Circle’s USDC in favor of USDT as its primary settlement asset for the relaunch. This is a massive strategic win for Tether, effectively buying market share and loyalty during a competitor’s moment of crisis.

On the flip side, Circle is facing a PR nightmare after failing to freeze funds during the six-hour window following the Drift exploit. On-chain sleuth ZachXBT pointed out that over $232 million was moved across Circle’s own bridge without any intervention, despite clear links to North Korean actors.

This oversight caused Circle’s stock to tank 10% on April 9, though it has since clawed back a 20% gain as of yesterday's close. While the market might be forgiving, the technical criticism from cybersecurity researchers suggests a lasting dent in Circle’s armor.

💡 Feature of the Day: 

Zonda's $334M Bitcoin Is Stuck [Source][Source][Source]

Zonda Exchange is currently the poster child for "not your keys, not your coins," as CEO Przemysław Kral admits a 4,500 BTC wallet is now inaccessible. The private keys to this $334 million fortune were apparently never handed over by founder Sylwester Suszek, who has been missing since 2022.

While Kral denies any insolvency, the fact that the last recorded transaction was in November 2025 does little to calm nervous investors. It is a bizarre scenario where a missing person holds the literal keys to the exchange’s survival.

The situation escalated on April 6 when a spike of 25,000 withdrawal requests hit the platform following reports of a probe by Polish authorities. While Kral insists Zonda is solvent and blames "negative media coverage" for the crisis, the pressure from lawmaker Tomasz Mentzen suggests a complete loss of access.

The exchange has already fled to Estonia to escape regulatory heat in Poland, but a missing CEO and locked-up Bitcoin are problems no jurisdiction can easily solve. Legal action is promised, but for users, the wait for their funds continues amid this political and financial quagmire.

😂 Crypto Meme of the Day: 

Meme of the day provided by @Creative_Ad7831

And that’s it for this today.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com