LayerZero Sued Over $292M Exploit After Cross-Chain Bridge Hack

KelpDAO has filed a lawsuit against LayerZero and co-founder Bryan Pellegrino over a $292 million exploit in April that drained 116,500 rsETH from its cross-chain bridge.

The attack had significant consequences for the DeFi ecosystem, with stablecoin markets coming under pressure and Aave reportedly borrowing $300 million to meet rising user demand for withdrawals.

KelpDAO is seeking to hold LayerZero and Pellegrino accountable for the damage caused by the exploit, which it claims was enabled by weaknesses in LayerZero's technology and security infrastructure.

Pellegrino has rejected the accusations, calling the claim meritless and stating that he will defend himself in court.