KelpDAO

Kelp DAO has filed a civil lawsuit against LayerZero and its co-founder Bryan Pellegrino over this year's exploit of rsETH's LayerZero bridge — the roughly $292 million attack on April 18.

The complaint alleges the exploit resulted from LayerZero's failures, including not disclosing weaknesses and risks in its own technology and failing to prevent an infiltration of its security infrastructure. Kelp says LayerZero reviewed and endorsed in writing Kelp's deployment and configuration of that technology.

• Kelp says LayerZero and Pellegrino publicly blamed Kelp for the exploit rather than taking responsibility.
• Since the incident, Kelp says it has prioritized user asset security, including migrating rsETH's bridge to a more secure cross-chain standard.
• The publicly filed complaint is available via Kelp's statement; the DAO says it looks forward to its day in court.

Kelp flagged potential suspicious activity on address 0xc70f00cd7e461686b04b0e912e309beca8b80ea0, which received rsETH a few hours ago. Out of caution, Kelp placed the address under a temporary 24-hour pause during which rsETH cannot move in or out.

The pause is a precautionary measure while Kelp investigates the activity; no broader interruption to rsETH holding or the rest of the protocol was indicated in the notice.

Kelp has resumed rsETH bridging via LayerZero across Ethereum and all L2s. The restoration follows a planned 24-hour pause that began at 8AM PST on 11 September, which allowed Kelp to complete the quarterly rsETH settlement for users on deprecated networks. All operations were successfully completed and bridging functionality has been fully restored.