KelpDAO Sues LayerZero Over $292 Million Exploit of rsETH Bridge
- KelpDAO has filed a lawsuit against LayerZero following the theft of $292 million in rsETH on April 18.
- The lawsuit claims that LayerZero’s security failures contributed to the exploit, which involved the theft of 116,500 rsETH.
- LayerZero’s CEO, Bryan Pellegrino, called the lawsuit “meritless” and plans to defend it in Vancouver.
- KelpDAO alleges that LayerZero failed to disclose risks and had previously endorsed its bridge configuration as secure.
- In response to the incident, KelpDAO plans to migrate its bridge to Chainlink’s Cross-Chain Interoperability Protocol.
The lawsuit marks a significant escalation in a dispute over responsibility for the exploit, with both parties blaming each other for security lapses. The attack raised concerns about vulnerabilities in cross-chain protocols and their implications for DeFi security.
As KelpDAO seeks accountability from LayerZero for the $292 million loss, this case could set important precedents regarding liability in decentralized finance projects. (Source)
