KelpDAO sues LayerZero and CEO over a $292 million vulnerability
2026-09-25 17:03:46
CoinMeta data: KelpDAO has filed a lawsuit against LayerZero and its co-founders, accusing their universal bridge protocol of causing this year's largest vulnerability, resulting in losses of $292 million. KelpDAO states that this vulnerability directly stemmed from LayerZero's failure to disclose the inherent weaknesses and risks of the technology, as well as their inability to prevent penetration of security infrastructure. LayerZero CEO Pellegrino responded by saying they will meet in a Canadian court and claimed that the lawsuit is unfounded. The incident occurred on April 22nd when a North Korean hacker group attacked KelpDAO's cross-chain bridge, resulting in losses of 116,500 RSETH, worth approximately $292 million. The aftermath of this vulnerability affected the stablecoin market, forcing AAVE to borrow $300 million to meet user withdrawal demands. Experts pointed out that it exposed the structural risks of DeFi. KelpDAO stated that measures have been taken to ensure the safety of user assets, including migrating RSETH's bridge to a safer cross-chain standard.
Source:CoinDesk
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