KelpDAO files a civil lawsuit in British Columbia against LayerZero and LayerZero co-founder/CEO Bryan Pellegrino, claiming involvement in a major rsETH bridge exploit on April 18 that results in a loss of 116,500 rsETH worth about $292 million. The crypto firms dispute how the bridge verification setup was handled before the attack and whether related risks were properly communicated.
According to KelpDAO, LayerZero endorsed key aspects of the bridge’s configuration, including a “single-verifier” verification setup, and did so in writing. The company also alleges LayerZero failed to disclose risks tied to that verification arrangement and that warnings or approvals were not accompanied by appropriate risk disclosure.
The outlets report that Pellegrino rejects the lawsuit’s premise, describing the claims as “meritless,” and states he will defend himself and LayerZero. Decrypt further reports that KelpDAO alleges LayerZero approved the configuration multiple times and separately warned a different developer about it, a point used by KelpDAO to support its disclosure and endorsement allegations.
