Kelp DAO Sues LayerZero and Co-Founder Over $292 Million rsETH Exploit

Kelp DAO has filed a lawsuit against LayerZero and its co-founder Bryan Pellegrino, alleging that the cross-chain protocol's security flaws led to the $292 million rsETH bridge exploit in April 2026. The incident, which involved the theft of 116,500 rsETH, was the largest DeFi exploit of the year. Kelp DAO claims LayerZero previously endorsed its configuration, while LayerZero attributes the breach to a 1-of-1 verifier setup and a compromised remote procedure call (RPC) node. Kelp is currently transitioning to a new cross-chain standard.