KelpDAO Sues LayerZero Over $292M rsETH Cross-Chain Bridge Attack

KelpDAO has filed a lawsuit against LayerZero and its co-founder Bryan Pellegrino over the rsETH cross-chain bridge attack that occurred earlier this year.

The lawsuit claims that LayerZero failed to disclose inherent technical weaknesses and risks, as well as failing to prevent their security infrastructure from being breached. Additionally, it is alleged that LayerZero had previously reviewed and approved Kelp's deployment and configuration.

Since the attack, LayerZero has publicly accepted responsibility for the incident and taken steps to ensure user asset safety, including migrating the rsETH cross-chain bridge to a more secure standard.

Pellegrino tweeted in response that KelpDAO's claims lack basis and will be defended against in court. He also stated that he would attend the trial in Vancouver to argue the case.