KelpDAO Sues LayerZero and CEO Bryan Pellegrino Over $292M Exploit

KelpDAO has initiated a lawsuit in British Columbia against LayerZero and CEO Bryan Pellegrino, alleging that security failures within LayerZero's infrastructure led to the $292 million exploit of its rsETH token in April. KelpDAO claims that LayerZero endorsed its specific deployment configuration, contradicting LayerZero's assertion that the breach resulted from KelpDAO's use of a single Decentralized Verifier Network (DVN). The protocol maintains that its setup followed official documentation and default practices provided by LayerZero.