LayerZero and KelpDAO Engulfed in $292M Crypto Bridge Exploit Lawsuit

KelpDAO has filed a lawsuit against cross-chain protocol LayerZero and its CEO Bryan Pellegrino over the $292 million exploit of its rsETH bridge in April. The attack resulted in the theft of 116,500 rsETH worth around $292 million at the time.

KelpDAO alleges that LayerZero failed to disclose risks in its technology or prevent attackers from compromising its infrastructure. It also claims that LayerZero had reviewed and endorsed Kelp's deployment and configuration in writing before the exploit.

Pellegrino dismissed the claim as 'meritless' and stated he would defend the case in Vancouver. The lawsuit is a continuation of a months-long dispute over whether the loss was caused by the compromise of LayerZero's infrastructure or KelpDAO's bridge configuration.