KelpDAO Sues LayerZero Over $292M Bridge Exploit Alleging Security Failures

KelpDAO has filed a lawsuit against LayerZero and co-founder Bryan Pellegrino over a $292 million bridge exploit. The protocol alleges that LayerZero failed to reveal significant technology risks before the attack, which allowed attackers to steal approximately 116,500 rsETH.

The incident occurred earlier this year, and KelpDAO claims that LayerZero's verifier configuration of 1-of-1 created a major security weakness for the bridge. The protocol argues that LayerZero reviewed and endorsed its deployment configuration in writing, making them directly responsible for the security issues.

LayerZero co-founder Bryan Pellegrino has rejected the allegations, stating that they are 'meritless' and that LayerZero will defend itself. KelpDAO is seeking to establish a public record about the events surrounding the exploit and to hold LayerZero accountable for its actions.