TREE NEWS update: KelpDAO has filed a lawsuit against LayerZero and its CEO Bryan Pellegrino over a $292 million rsETH bridge exploit, saying LayerZero endorsed its bridge setup before the attack. Pellegrino has dismissed the lawsuit as meritless.
KelpDAO sues LayerZero, CEO over $292M rsETH bridge exploit
The dispute reframes a bridge exploit as a governance and due-diligence question, not just a code failure: KelpDAO's claim that LayerZero endorsed the setup before the attack puts pre-deployment assurances at the centre, while LayerZero's dismissal signals a hard fight over who owns bridge risk. That matters for every restaking and omnichain project relying on third-party verification, since the outcome could shape how such endorsements are documented and relied upon. Whether the case produces clearer standards for shared infrastructure liability is the open question.
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