LayerZero Sued for $292M After $292M Exploit Rocks Crypto Industry

KelpDAO's owners have filed a lawsuit against LayerZero Labs and its CEO Bryan Pellegrino, seeking $292 million in damages for April's $292 million rsETH exploit.

The claim alleges that LayerZero was negligent in its security model, which relied on a single verifier to approve cross-chain transfers. The company had previously warned another developer about the risks of default verifier configurations, but not KelpDAO.

Kelp users have withdrawn over $650 million since the attack, and nearly $15 billion in assets has moved off LayerZero's network to Chainlink's CCIP in recent months.