KelpDAO is suing LayerZero and co-founder Bryan Pellegrino over security failures that led to a $292M rsETH bridge exploit in 2026. Discussion on social media reflects ongoing concerns about bridge security and its impact on DeFi protocols like Aave.
KelpDAO is suing LayerZero and CEO Bryan Pellegrino over a $292 million rsETH bridge exploit allegedly caused by undisclosed risks and a flawed 1-of-1 verifier setup that enabled North Korea-linked hackers to drain 116,500 rsETH. LayerZero denies the allegations and says it will defend the case in Vancouver courts, while KelpDAO migrates users to a safer bridge.
KelpDAO is suing LayerZero and CEO Bryan Pellegrino over a $292 million rsETH bridge exploit that drained 116,500 rsETH in April 2026. KelpDAO claims LayerZero reviewed and endorsed the bridge setup but failed to disclose security risks, while Pellegrino denies the allegations. The case highlights ongoing disputes over responsibility for DeFi security failures.
KelpDAO is suing LayerZero and CEO Bryan Pellegrino over a $292 million rsETH bridge exploit in April 2026 attributed to North Korea-linked hackers. KelpDAO alleges LayerZero failed to disclose risks and approved an insecure single-verifier configuration, while Pellegrino calls the claims meritless and vows to defend the case in Vancouver courts.
KelpDAO sued LayerZero and co-founder Bryan Pellegrino over security failures that caused an rsETH bridge exploit earlier in 2026. Separately, Bitget disclosed a $351.6 million breach of its hot wallet system, with user funds protected by its $464 million Protection Fund and withdrawals paused pending investigation.
Five months after an rsETH bridge exploit on LayerZero in April 2026, Aave's token buybacks remain frozen. The protocol faces a $79M shortfall funded through donations, treasury reserves, and loans from Mantle and other partners, with repayment dependent on protocol revenue that has declined 41% since the incident.