KelpDAO sues LayerZero for the largest exploit 2026 has seen so far
Source: CoinDesk ·
From the source
The cross-chain lending protocol accused LayerZero and its co-founder Brian Pellegrino of failing to disclose weaknesses in their protocol, which led to the $292 million hack. KelpDAO filed a lawsuit against LayerZero and its co-founder, blaming the universal bridge protocol for the largest exploit of this year, which drained $292 million and triggered one of the largest DeFi runs in crypto history, according to a post on X on Thursday . “The exploit was a direct result of LayerZero’s failures, including a failure to disclose weaknesses and risks inherent in LayerZero’s own technology,” KelpDAO said. KelpDAO, a decentralized liquid staking protocol on Ethereum, also accused LayerZero of failing to prevent infiltration of its security infrastructure, claiming that this allowed attackers to exploit the universal bridge’s alleged weaknesses. “Rather than take responsibility, over the last few months, LayerZero and Mr. Pellegrino publicly blamed us for their failures,” KelpDAO said.…