KelpDAO Sues LayerZero Over $292M rsETH Exploit

KelpDAO is suing LayerZero and its CEO Bryan Pellegrino in British Columbia over a $292 million rsETH exploit that occurred on April 18. The attack drained about 116,500 rsETH from KelpDAO's bridge.

KelpDAO alleges that LayerZero failed to disclose security risks despite reviewing and approving the bridge configuration in writing. The protocol is now moving rsETH cross-chain transfers to a new security framework after the breach.

LayerZero disputes this account of responsibility, with Pellegrino calling the lawsuit 'meritless.' He plans to defend the case in Vancouver. The court has not determined responsibility for the exploit, and the allegations remain subject to legal proceedings.