KelpDAO Accuses LayerZero in $292 Million Exploit, Plans Chainlink Switch
- KelpDAO blames LayerZero for a $292 million exploit affecting its cross-chain bridge.
- The attack drained approximately 116,500 rsETH from Kelp’s system, linked to North Korea’s Lazarus Group.
- KelpDAO plans to relaunch using Chainlink‘s interoperability protocol with multiple independent validators.
- A U.S. court is involved in a legal dispute over $71 million in frozen funds related to the exploit on the Arbitrum network.
KelpDAO accuses LayerZero of failing to prevent a major exploit by approving an insecure setup that led to significant losses across DeFi. The protocol is now shifting its system to Chainlink for enhanced security and validator diversity.
This incident not only highlights vulnerabilities in cross-chain systems but also prompts legal scrutiny over frozen assets worth millions, potentially influencing future DeFi recovery protocols. Source
