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KelpDAO sues LayerZero after alleged $292M rsETH bridge exploit
KelpDAO alleges LayerZero failed to disclose risks and did not prevent attackers from compromising its security infrastructure.
KelpDAO has filed a lawsuit against cross-chain protocol LayerZero following an approximately $292 million exploit of its rsETH bridge earlier this year, according to Cointelegraph.
KelpDAO claims that failures in LayerZero's security infrastructure contributed to the attack, and it says LayerZero did not disclose risks in its technology or stop attackers from compromising that infrastructure.
The crypto group also alleges that LayerZero reviewed and endorsed its rsETH bridge deployment and configuration in writing before the exploit, while LayerZero's CEO Bryan Pellegrino has dismissed the lawsuit as meritless.
Decrypt adds that Evercrest developer Evercrest says LayerZero approved a single-verifier configuration in writing multiple times and also warned a different developer about it.