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Crypto DeFi

KelpDAO sues LayerZero, CEO over $292M rsETH bridge exploit

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.

Original source

AI take

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.

Generated by AI for reference only.

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