LayerZero Sued Over $292M rsETH Bridge Exploit, CEO Defends Claim

KelpDAO has filed a lawsuit against LayerZero and its CEO Bryan Pellegrino over the $292 million exploit of its rsETH bridge in April. The attack compromised internal nodes, causing the verifier to approve a forged cross-chain message that released the stolen assets.

KelpDAO alleges that LayerZero's security infrastructure was inadequate and failed to disclose risks, which contributed to the attack. It also claims that LayerZero reviewed and endorsed its deployment and configuration in writing before the exploit.

Pellegrino has called the lawsuit 'meritless' and stated he would defend it in Vancouver. This is part of a months-long dispute over whether the loss was caused by the compromise of LayerZero's infrastructure or KelpDAO's bridge configuration.