KelpDAO Sues LayerZero Over $292M rsETH Exploit

KelpDAO has filed a lawsuit against LayerZero and its co-founder Bryan Pellegrino in British Columbia over the April exploit that drained approximately $292 million from KelpDAO's LayerZero bridge infrastructure.

The attack, which occurred on April 18, resulted in the loss of 116,500 rsETH. KelpDAO alleges that LayerZero failed to disclose technology risks and secure its infrastructure, making it vulnerable to the attack.

LayerZero has disputed these claims, stating that KelpDAO's one-of-one verifier configuration created a single point of failure that allowed the attackers to exploit the system.

The parties have been engaged in a public technical dispute over responsibility for the exploit. LayerZero has maintained that it reviewed and approved KelpDAO's bridge setup, but KelpDAO claims that this is not true.