KelpDAO sues LayerZero and CEO over alleged $292 million exploit

KelpDAO sued LayerZero and its co-founder, Bryan Pellegrino, over an alleged $292 million rsETH bridge exploit. KelpDAO blamed LayerZero for what it called the largest exploit of this year. The April 22 attack drained 116,500 rsETH. The attack contributed to a broader liquidity crisis that erased $20 billion in decentralized finance deposits. KelpDAO said the exploit resulted directly from LayerZero's failures to disclose weaknesses and risks in its technology. KelpDAO also accused LayerZero of failing to prevent an infiltration of its security infrastructure. KelpDAO claimed that the infiltration allowed attackers to exploit alleged weaknesses in the universal bridge. KelpDAO said LayerZero and Pellegrino had publicly blamed KelpDAO for their failures over the last few months. Pellegrino said he would defend himself and LayerZero in a Canadian court. Pellegrino called the civil claim meritless and said he would defend himself in Vancouver.