KelpDAO Sues LayerZero Over $292M rsETH Bridge Exploit

KelpDAO has filed a civil claim against LayerZero and its co-founder Bryan Pellegrino over the April 18 rsETH bridge exploit that resulted in approximately $292 million in losses.

The claim alleges that LayerZero failed to adequately disclose risks in their technology and did not prevent attackers from compromising infrastructure used to verify cross-chain transactions. It also states that LayerZero reviewed and approved Kelp's bridge deployment and configuration before the attack, which has not been adjudicated yet.

LayerZero had previously maintained that Kelp's bridge configuration created a single point of failure, known as a 1-of-1 DVN setup, where only one verification path was used. However, Kelp disputes this account, saying that LayerZero reviewed and endorsed the deployment and configuration before the exploit.