LayerZero Faces $292M rsETH Exploit Lawsuit

KelpDAO has filed a civil claim against LayerZero entities and co-founder Bryan Pellegrino over a $292 million rsETH bridge exploit in April.

The lawsuit alleges that LayerZero reviewed and endorsed a security configuration using a single Decentralized Verifier Network (DVN), which created a dangerous single point of failure.

KelpDAO claims that LayerZero later blamed the project for using this design, but Evercrest Technologies, the company behind KelpDAO, argues that LayerZero is responsible for the review and endorsement.