KelpDAO Sues LayerZero Over $292 Million rsETH Exploit

KelpDAO filed a lawsuit against LayerZero and its co-founder Bryan Pellegrino in British Columbia, Canada. The case centers on an April 18 exploit that drained 116,500 rsETH worth about $292 million from Kelp's bridge.

The complaint alleges that LayerZero failed to disclose weaknesses and risks in its technology and did not stop attackers from breaking into the security infrastructure used by its verifier.

Kelp says LayerZero reviewed and approved the setup of its rsETH bridge in writing before the attack. However, LayerZero claims Kelp used a single-verifier setup, contrary to its documented defaults.

The lawsuit also names Pellegrino personally. He disputes the case, calling the claims 'meritless.'