KelpDAO Sues LayerZero, Co-Founder Over $292 Million rsETH Attack
The lawsuit seeks accountability for an April bridge attack that drained about 116,500 rsETH. LayerZero CEO Bryan Pellegrino said he will defend the claims in Vancouver.
KelpDAO has sued LayerZero and co-founder and CEO Bryan Pellegrino over an attack on its rsETH cross-chain bridge, seeking accountability for losses estimated at about $292 million.
The April 18 attack resulted in the loss of approximately 116,500 rsETH. The filing alleges that LayerZero failed to disclose inherent weaknesses and risks in its technology, failed to prevent a breach of its security infrastructure, and had reviewed and approved KelpDAO’s deployment and configuration.
LayerZero has publicly attributed responsibility for the incident to itself in recent months, the filing states. Pellegrino rejected KelpDAO’s claims as lacking basis and said he would defend the case in Vancouver.
KelpDAO said it has taken steps to protect users since the attack, including moving the rsETH bridge to a more secure cross-chain standard. The lawsuit adds a legal dispute to the continuing fallout from the bridge attack.
