KelpDAO sues LayerZero over $292 million exploit

VERA Brief

AI-generated. Grounded in the article and its cited sources.

Decentralized finance protocol KelpDAO has sued blockchain interoperability firm LayerZero and its co-founder Brian Pellegrino. KelpDAO alleges that LayerZero failed to disclose protocol weaknesses, which led to a $292 million exploit.

Key facts

• KelpDAO has filed a lawsuit against LayerZero and its co-founder Brian Pellegrino.
• KelpDAO alleges that LayerZero failed to disclose protocol weaknesses.
• The alleged failure to disclose weaknesses contributed to an exploit resulting in a loss of $292 million.
• KelpDAO claims LayerZero endorsed its bridge setup in writing multiple times.
• LayerZero and Brian Pellegrino have dismissed the lawsuit as meritless.