$15 Billion Migration Wave Follows $292 Million LayerZero Exploit

Nearly $15 billion in assets is moving off LayerZero's platform after a $292 million exploit in April, according to a recent migration wave.

The company behind KelpDAO has sued LayerZero Labs and its CEO, Bryan Pellegrino, over the incident, alleging negligent misrepresentation, negligence, and defamation. The suit seeks aggravated and punitive damages, with Kelp users having withdrawn more than $650 million since the attack.

Pellegrino has called the suit 'meritless'.

The April 18 exploit occurred when attackers tricked LayerZero's verifier into approving a forged cross-chain transfer. The incident report attributed the intrusion to a developer who was socially engineered into cloning a malicious GitHub repository in March.