KelpDAO Sues LayerZero Over $292 Million rsETH Bridge Attack

KelpDAO is taking legal action against LayerZero and its co-founder and CEO Bryan Pellegrino. The lawsuit stems from an attack on KelpDAO's rsETH cross-chain bridge, which resulted in a loss of approximately 116,500 rsETH valued at about $292 million. According to the filing, LayerZero failed to disclose inherent weaknesses and risks in its technology and did not prevent a breach of its security infrastructure.

The attack occurred on April 18, and KelpDAO has since taken steps to protect users by moving the rsETH bridge to a more secure cross-chain standard. Pellegrino, LayerZero's CEO, has publicly attributed responsibility for the incident to himself but rejects KelpDAO's claims as lacking basis.

The lawsuit adds to the ongoing fallout from the bridge attack and seeks accountability for KelpDAO's losses. The case is set to be defended in Vancouver by Pellegrino.