KelpDAO Files Lawsuit Against LayerZero and CEO Over $292 Million rsETH Exploit

KelpDAO entity Evercrest Technologies has initiated a civil lawsuit in British Columbia against LayerZero Labs and CEO Bryan Pellegrino regarding the $292 million rsETH bridge exploit from April. KelpDAO alleges that LayerZero failed to disclose technical vulnerabilities and did not secure its infrastructure, despite previously approving KelpDAO's bridge configuration. Pellegrino dismissed the claims as baseless. The April 18 incident involved an attacker compromising LayerZero developer credentials to manipulate RPC nodes, allowing the unauthorized release of approximately 116,500 rsETH. LayerZero maintains that KelpDAO's use of a single-validator configuration created a single point of failure, while KelpDAO is currently migrating its bridge to new security standards.