Analyst Alleges Hacker Money Laundering Behind USDD TVL Surge Amid Exploit Recovery
Crypto analyst Specter alleged that $USDD's record-high Total Value Locked (TVL) of $2.23 billion, with a supply of $1.56 billion and collateral assets totaling $2.16 billion (146% collateral ratio), is primarily driven by hacker money laundering from the recent KelpDAO exploit, rather than organic growth. Justin Sun presented this growth as a result of transparent reserves and expanding integrations across DeFi and AI ecosystems, including yield offerings such as 7.16% APY on Binance Wallet and 6.89% APY on GateDEX. Following these allegations, $USDD's price remained stable at $0.999979, with no significant 24-hour or 7-day movement.
The KelpDAO exploit, which targeted the $rsETH restaking protocol on April 18, resulted in an approximate loss of $292 million, allegedly perpetrated by North Korea's Lazarus Group. Recovery efforts saw a U.S. judge clear the transfer of 30,766 $ETH ($71 million) from Arbitrum to an Aave-controlled wallet. Judge Margaret Garnett of the Southern District of New York approved a modification to a restraining notice, allowing this transfer while shielding participants who voted for the on-chain governance proposal from potential liability. The ruling also established a precedent that a thief does not transfer legal ownership, a principle with implications for DeFi protocols. Arbitrum's Security Council had previously utilized emergency powers to freeze the funds.
Aave's liquidity stabilized following the exploit, with the ETH transfer approval leading to 96% bullish sentiment for $AAVE. The Kelp team announced upcoming $rsETH contract operations with Aave, advising users no action was required.
Ripple Secures Favorable Court Decision
Ripple ($XRP) announced on May 9, 2026, it had secured a favorable court decision, stating it "celebrates favorable decision in Justice." Immediately following the announcement, $XRP's price remained stable, recording a 24-hour change of 0.0% and trading at $1.420000. Over the preceding seven days, $XRP had seen a price increase of 2.2%.
Solana Token Rug Pull Drains $20M
A Solana-based token, identified by the contract address RoAFTaaY51FvFTiEaiVYbg8bjFnGkBMzEor85JwVibe, has reportedly executed a rug pull, draining approximately $20 million in investor funds.