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

Pellegrino rejected the civil claim, calling it meritless and saying that he would defend himself in Vancouver courts. KelpDAO has filed a lawsuit against LayerZero and its co-founder Bryan Pellegrino, accusing the bridge provider of security failures behind the $292 million exploit of its rsETH token in April. The suit, filed in British Columbia, is KelpDAO’s most direct attempt yet to hold LayerZero accountable after months of public disagreement over what caused the breach. KelpDAO Accuses LayerZero of Security Failures In a statement posted on X on September 25, KelpDAO alleged that the exploit resulted from LayerZero’s failure to disclose weaknesses in its technology and prevent an infiltration of its security infrastructure. “Rather than take responsibility, over the last few months, LayerZero and Mr. Pellegrino publicly blamed us for their failures,” KelpDAO stated. “But the record is straightforward: LayerZero reviewed and endorsed—in writing—our deployment and configuration of LayerZero’s technology.” That directly challenges LayerZero’s argument that the attack was isolated to KelpDAO’s rsETH configuration because the bridge used a 1-of-1 Decentralized Verifier Network, o...