KelpDAO Files Lawsuit Against LayerZero Over rsETH Bridge Exploit

KelpDAO has initiated legal action against LayerZero and its co-founder Bryan Pellegrino regarding the rsETH cross-chain bridge exploit that occurred earlier this year. The lawsuit alleges that LayerZero failed to disclose inherent technical risks, allowed its security infrastructure to be compromised, and had previously audited and approved Kelp's deployment. LayerZero CEO Bryan Pellegrino stated the claims are meritless and plans to defend the case in Vancouver. The incident, which occurred on April 18, 2026, resulted in the loss of approximately 116,500 rsETH, valued at roughly $292 million.