Crypto Pulse

KelpDAO Sues LayerZero Over Approximately $292M rsETH Bridge Exploit

KelpDAO Sues LayerZero Over Approximately $292M rsETH Bridge Exploit

KelpDAO alleges compromised LayerZero verifier infrastructure and prior approval enabled forged messages; LayerZero disputes the account and highlights Kelp's single-DVN setup. Most funds remain unrecovered, Arbitrum reportedly recovered $71M in ETH, and the dispute continues to expose verifier-diversity and bridge-liability risks.

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Updated Oct 10, 2026