KelpDAO sued LayerZero and Bryan Pellegrino in the Supreme Court of British Columbia over the April exploit that drained 116,500 rsETH (about $292M) through its LayerZero bridge.

Kelp says the hack was a direct result of LayerZero's failures: not disclosing weaknesses and risks in its own technology, and not stopping attackers from infiltrating LayerZero's own security infrastructure. It also says that while LayerZero and Pellegrino publicly blamed Kelp for months, LayerZero had reviewed and endorsed Kelp's bridge deployment and configuration in writing. The claim was filed by Evercrest Technologies, the company behind Kelp, and names the LayerZero co-founder personally. Pellegrino replied on X that the claim "continues to be meritless" and that he will "meet them in Vancouver."

LayerZero's position hasn't changed since April: it tied the attack to North Korea's Lazarus Group, which poisoned the RPC nodes feeding its verifier, and says the exploit only worked because Kelp ran a 1-of-1 verifier setup against its advice. Kelp has since moved rsETH's bridge to Chainlink CCIP.

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