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.
25 Articles
25 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…
KelpDAO Takes Layerzero to Court Over a $292M Bridge Blowup
Five months after attackers tricked a Layerzero-powered bridge into releasing 116,500 rsETH worth about $292 million without a matching burn, the fight over who was responsible has landed in court. Evercrest Technologies, the company behind KelpDAO, filed a civil claim in British Columbia against Layerzero Labs and CEO Bryan Pellegrino. The money moved in one […]
Coverage Details
Bias Distribution
- 100% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
