KelpDAO Sues LayerZero Over $294M April Exploit, Alleging Protocol Failures

KelpDAO has filed a lawsuit against LayerZero and its CEO Bryan Pellegrino over an April exploit that resulted in the theft of rsETH worth around $294 million.

The claim alleges that LayerZero failed to disclose weaknesses and risks within its protocol, and also didn't attempt to prevent attackers from compromising its security infrastructure.

KelpDAO claims that LayerZero reviewed and endorsed its deployment before the exploit took place. Pellegrino has responded to the lawsuit, calling it 'meritless' and stating he's ready to defend himself in court.