KelpDAO sues LayerZero and CEO over $292 million rsETH exploit
Evercrest Technologies, the entity behind KelpDAO, sued LayerZero and CEO Bryan Pellegrino in British Columbia over an April exploit that drained about 116,500 rsETH, worth $292 million. KelpDAO alleges LayerZero failed to disclose security risks and had reviewed and approved the bridge configuration in writing, while LayerZero counters that KelpDAO used a 1-of-1 decentralized verifier network (DVN) that created the critical failure point. The attack used stolen developer session credentials to compromise nodes and supply false data; KelpDAO is migrating transfers to Chainlink CCIP and asset recovery efforts and attribution to TraderTraitor/Lazarus continue.
A court will decide liability for a $292 million bridge exploit
Context
A LayerZero-powered bridge was attacked in April and lost 116,500 rsETH. The parties now have a lawsuit in British Columbia. KelpDAO is moving cross-chain transfers to a different security framework.
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