KelpDAO sues LayerZero over $292 million rsETH bridge exploit

KelpDAO sues LayerZero over $292M rsETH exploit

KelpDAO has sued LayerZero and CEO Bryan Pellegrino over April’s $292M rsETH exploit, alleging security and disclosure failures.

Sep 25, 2026 · byCrypto.news

Kelp DAO Sues LayerZero and Co-Founder Over $292 Million rsETH Exploit

Kelp DAO sues LayerZero and Bryan Pellegrino, blaming them for the $292 million rsETH bridge exploit in April. The post Kelp DAO Sues LayerZero and Co-Founder Over $292 Million rsETH Exploit appeared first on BeInCrypto .

Sep 25, 2026 · byBeInCrypto

KelpDAO sues LayerZero, CEO over $292M rsETH bridge exploit

KelpDAO says LayerZero endorsed its bridge setup before the attack, while CEO Bryan Pellegrino has dismissed the lawsuit as meritless.

Sep 25, 2026 · byCointelegraph

KelpDAO sues LayerZero for the largest exploit 2026 has seen so far

Sep 25, 2026 · byCoinDesk

KelpDAO sues LayerZero, claims it endorsed setup used in $292 million rsETH exploit

KelpDAO sued LayerZero and Bryan Pellegrino over the April 18 rsETH exploit, alleging the bridge setup was endorsed in writing.

Sep 25, 2026 · byThe Block

KelpDAO Takes Layerzero to Court Over a $292M Bridge Blowup

Five months after attackers tricked a Layerzero-powered bridge into releasing 116,500 rsETH worth about $292 million without a matching burn, the fight over who was responsible has landed in court. Evercrest Technologies, the company behind KelpDAO, filed a civil claim in British Columbia against Layerzero Labs and CEO Bryan Pellegrino. The money moved in one […]

Sep 25, 2026 · byBitcoin.com News

KelpDAO Developer Sues LayerZero Over $292M Bridge Exploit

Evercrest says LayerZero approved the single-verifier configuration in writing multiple times, then warned a different developer about it.

Sep 25, 2026 · byDecrypt

KelpDAO developer sues LayerZero, CEO over $292 million exploit and blame-shifting

The lawsuit highlights the critical need for robust security measures and transparent communication in decentralized finance to prevent massive financial losses. The post KelpDAO developer sues LayerZero, CEO over $292 million exploit and blame-shifting appeared first on Crypto Briefing .

Sep 25, 2026 · byCryptoBriefing

KelpDAO claims April exploit was ‘direct result of LayerZero’s failures’ in new lawsuit

The effects of the KelpDAO hack haven’t faded yet.

Sep 25, 2026 · byAMBCrypto

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.

Sep 25, 2026 · byCryptoPotato

Nearly $15B is moving off LayerZero, now a $292M lawsuit puts its security model on trial

Evercrest Technologies, the company behind KelpDAO, has sued LayerZero Labs, its Canadian affiliate, and CEO Bryan Pellegrino in British Columbia over April's $292 million rsETH exploit. The claim alleges negligent misrepresentation, negligence and defamation, seeks aggravated and punitive damages, and says Kelp users have withdrawn more than $650 million since the attack. Pellegrino has called […] The post Nearly $15B is moving off LayerZero, now a $292M lawsuit puts its security model on trial appeared first on CryptoSlate .

Sep 26, 2026 · byCryptoSlate

KelpDAO Sues LayerZero Over $292M rsETH Bridge Exploit

TL;DR Evercrest Technologies, the company behind KelpDAO, has filed a civil claim against LayerZero entities and co-founder Bryan Pellegrino. The lawsuit concerns the April exploit that drained 116,500 rsETH, worth about $292 million at the time. KelpDAO alleges LayerZero reviewed and endorsed the bridge configuration later blamed for the attack; those claims have not been proven in court. The company behind KelpDAO has taken its dispute with LayerZero into court, filing a civil claim over the April bridge exploit that cost the restaking protocol roughly $292 million. Evercrest Technologies filed the case in the Supreme Court of British Columbia against LayerZero Labs Ltd., LayerZero Labs Canada Inc. and co-founder Bryan Pellegrino. The allegations include negligence, negligent misrepresentation and defamation. The Dispute Centers On A 1-of-1 Security Configuration The underlying exploit involved 116,500 rsETH moved through a bridge connecting KelpDAO infrastructure with Unichain. At the time of the attack, the assets were worth approximately $292 million. A major point of disagreement since then has been the bridge’s security configuration. KelpDAO alleges LayerZero reviewed and endorsed a setup using a single Decentralized Verifier Network, or DVN, rather than warning the project that the configuration created a dangerous single point of failure. The lawsuit further alleges that LayerZero later blamed KelpDAO for using that design. Those are allegations from Evercrest’s court filing. LayerZero has not been found liable, and the filing does not establish that its account of the events is correct. That distinction is especially important in a dispute where the technical responsibility for a bridge failure is itself part of the case. Bridge Security Is Becoming A Legal Question Too Cross-chain security failures have typically been treated as technical incidents. A bridge gets exploited, investigators trace the funds, developers patch the vulnerability and protocols argue over who configured what. The KelpDAO case could push that discussion into a different arena. If infrastructure providers review or recommend security configurations used by third-party applications, courts may eventually have to decide what responsibility comes with that advice. That has implications well beyond KelpDAO and LayerZero. Interoperability systems depend on protocols integrating software and trust assumptions they did not design entirely themselves. When hundreds of millions of dollars move through those systems, disagreements about who understood the risk can quickly become more than engineering disputes. For now, the lawsuit marks the beginning of that process rather than the conclusion. The exploit happened in April. The fight over who bears responsibility for it is only now moving into court. This article was written by the News Desk and edited by Samuel Rae.

Sep 26, 2026 · byNewsBTC