KelpDAO Sues LayerZero Over $292M rsETH Exploit
KelpDAO says LayerZero’s security failures let attackers drain 116,500 rsETH and forced major DeFi lenders to absorb market stress.
- Evercrest Technologies Inc., the legal entity behind KelpDAO, filed a civil claim in British Columbia against LayerZero and co-founder Bryan Pellegrino on Thursday, seeking damages for an April 18 exploit that drained 116,500 rsETH worth approximately $292 million.
- KelpDAO alleges LayerZero failed to disclose security weaknesses, allowing attackers to penetrate infrastructure before the bridge released funds, while LayerZero maintains Kelp utilized a 1-of-1 Decentralized Verifier Network configuration lacking independent checks.
- While LayerZero reported attackers socially engineered a developer to obtain credentials, KelpDAO claims the protocol reviewed and approved its configuration in writing before the exploit, contradicting LayerZero's argument that the setup was dangerous.
- Kelp committed 2,000 ETH to recovery efforts and migrated cross-chain transfers to Chainlink CCIP; a second attack attempt involving 40,000 rsETH was thwarted when Kelp paused its contracts roughly 46 minutes after the initial drain.
- Pellegrino intends to contest the action in Vancouver, according to public statements; under the province's Supreme Court Civil Rules, defendants generally have 21 to 49 days to respond, depending on service location.
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34 Articles
Kelp DAO Sues LayerZero and CEO Bryan Pellegrino Over $292 Million rsETH Bridge Exploit
Evercrest Technologies, the company that develops liquid restaking protocol Kelp DAO, has sued LayerZero Labs and its co-founder and CEO Bryan Pellegrino in the Supreme Court of British Columbia over the April exploit of rsETH’s LayerZero bridge. The notice of civil claim is dated Sept. 24, and Kelp published it late Thursday. In its statement, Kelp said “the exploit was a direct result of LayerZero’s failures” and that LayerZero had “reviewed a…
Kelp DAO sues LayerZero and his co-founder for the exploit of 292 million in the bridge of rsETH and tests the responsibility of the suppliers. The entry Kelp DAO sues LayerZero for hiding security flaws in the exploit of 292 million aparece primero en Merca2.
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