KelpDAO Sues LayerZero Over $292M rsETH Bridge Exploit

KelpDAO has filed a lawsuit against LayerZero and its CEO over the $292 million rsETH bridge exploit.
KelpDAO alleges that undisclosed security risks and a 1-of-1 verifier configuration left the bridge vulnerable, allowing attackers to drain roughly 116,500 rsETH.
The project says the hackers were linked to North Korea, though responsibility for the exploit remains part of the broader dispute.
A central issue in the case is whether LayerZero endorsed or approved the single-verifier setup that KelpDAO says created a critical point of failure.
LayerZero CEO Bryan Pellegrino has rejected the allegations, calling them “meritless” and saying the company will fight the claims in Vancouver courts.
KelpDAO says it is now migrating to a safer bridge architecture in an effort to protect users and reduce similar risks going forward.
The lawsuit turns one of crypto’s largest recent bridge exploits into a broader legal battle over who is responsible when infrastructure providers, applications and security configurations fail.