KelpDAO Sues LayerZero Over $292M Cross-Chain Bridge Exploit
KelpDAO has filed a lawsuit against LayerZero and its CEO, Bryan Pellegrino, over a major cross-chain bridge exploit that occurred in April. The incident resulted in the theft of approximately $292 million worth of rsETH.
KelpDAO alleges that shortcomings in LayerZero's security infrastructure contributed to the theft, and that the company failed to disclose relevant risks to users. The lawsuit also claims that LayerZero reviewed and endorsed KelpDAO's bridge deployment and configuration in writing before the incident occurred.
Pellegrino has rejected the allegations as 'meritless' and said he plans to defend the case in Vancouver. The dispute highlights a central fault line: whether the loss was caused primarily by compromise of LayerZero's infrastructure, weaknesses or decisions in KelpDAO's bridge configuration, or both.