KelpDAO sues LayerZero over $292M rsETH exploit
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Evercrest Technologies, which develops KelpDAO, filed a civil claim in British Columbia against LayerZero, its Canadian arm, and CEO Bryan Pellegrino over the April rsETH bridge exploit. The filing ties the case to 116,500 rsETH drained in the attack, which was worth about $292 million at the time, and says the bridge setup was approved in writing before the incident. Pellegrino has said he will defend the claims in Vancouver, and he has also called the lawsuit meritless.
Key claims & sources
What it means
KelpDAO users and the wider DeFi sector are seeing a court fight rather than another round of public argument. The claim was filed in British Columbia, and it names LayerZero, its Canadian arm, and Bryan Pellegrino as defendants, so the dispute now sits in a court process that can surface new filings and testimony.
The practical change is that LayerZero’s bridge design and prior approvals are now part of a civil claim, not just a technical dispute around the April exploit. Before this filing, KelpDAO says LayerZero had endorsed the bridge setup in writing; now that same setup is being used as the basis for negligence and disclosure allegations in court.
What remains open is how the court will treat the written approvals, the single-verifier configuration, and the security and disclosure claims. The filings do not settle whether those approvals cover the disputed setup or whether the alleged flaws will be accepted as described, and that will depend on the record built in British Columbia. (per decrypt.co)
Market reaction i
The move was larger before the first headline than after. That is an observation, not an explanation: the market also moves on things nobody publishes.
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