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Crypto DeFi

KelpDAO Sues LayerZero Over $292M rsETH Exploit

KelpDAO has sued LayerZero and its CEO Bryan Pellegrino over the April 18 rsETH exploit that drained $292 million, alleging the bridge setup used in the attack was endorsed in writing. The suit targets LayerZero’s role in the configuration that KelpDAO says it relied on.

Original source

AI take

The core issue is not the loss itself but the endorsement claim: KelpDAO is arguing it relied on LayerZero's written sign-off on a bridge configuration, which turns a technical failure into a question of who owned the risk. That matters well beyond these two parties, because cross-chain restaking arrangements often rest on exactly this kind of informal assurance rather than contractual allocation of liability. Whether the written endorsement is treated as a binding commitment or a technical opinion is the open question, and how courts frame that distinction could shape how bridge dependencies are documented across the sector.

Generated by AI for reference only.

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