LayerZero and CEO Sued Over $292 Million Crypto Bridge Exploit
KelpDAO has filed a lawsuit against LayerZero and its CEO Bryan Pellegrino over the $292 million rsETH bridge exploit in April. The attack compromised Kelp's LayerZero-powered bridge, allowing hackers to steal 116,500 rsETH worth around $292 million at the time.
The lawsuit alleges that LayerZero failed to disclose risks in its technology or prevent attackers from compromising its infrastructure. KelpDAO claims that LayerZero had reviewed and endorsed its deployment and configuration in writing before the exploit.
Pellegrino called the claim 'meritless' and stated he would defend the case in Vancouver. The lawsuit escalates a months-long dispute over who is responsible for the loss: whether it was due to the compromise of LayerZero's infrastructure, KelpDAO's bridge configuration, or both.