KelpDAO Sues LayerZero Over $292M Exploit Alleging Infrastructure Failure
KelpDAO has filed a lawsuit against LayerZero and its CEO Bryan Pellegrino over a $292 million exploit that occurred on April 18 in relation to KelpDAO's rsETH bridge.
The complaint alleges that LayerZero failed to properly disclose risks associated with its technology, which allowed attackers to compromise the system's infrastructure. Additionally, it claims that LayerZero reviewed and endorsed KelpDAO's deployment and configuration before the exploit.
KelpDAO has accused LayerZero of not warning them about relevant risks, despite their earlier discussions on DVN configurations being deemed secure. The case highlights a broader pattern in DeFi cross-chain disputes where responsibility is contested between protocol infrastructure failures and application-level design choices.