The dispute puts bridge security design and LayerZero’s alleged assurances under scrutiny, as KelpDAO says users have withdrawn more than $650M since the attack.
The April 22 attack drained 116,500 rsETH and helped trigger a $20B DeFi deposit exodus, putting bridge security and accountability under scrutiny.
Card purchases and every other Payy Network transaction are halted, while the company has disclosed neither customer losses nor a restart timetable.
Bitget says its $464M User Protection Fund covers the reported loss, but withdrawals remain frozen as investigators examine the attack and an unconfirmed North Korea link.
The lawsuit puts bridge security and responsibility for the exploit at the center of a dispute involving LayerZero and its co-founder.
The British Columbia claim puts LayerZero’s role in the bridge security failure at the center of a dispute over one of crypto’s largest reported exploits.
Bitget says its $464M-plus protection fund covers the loss, but withdrawals remain paused while the exchange reviews security and works to confirm a restart timeline.
The attribution, if confirmed, would put a major exchange breach in the spotlight of state-linked cybercrime and raise fresh questions about stolen-fund recovery.
Bitget says its user protection fund exceeds $464 million, a reserve it says is sufficient to cover the loss after the hot-wallet transfers.
The comparison highlights a trade-off between Bitcoin’s ossified rules and Zcash’s ability to adapt to privacy needs and emerging threats.
The attribution remains unconfirmed, but the alleged DPRK connection raises the stakes for exchange security and scrutiny around the $352M loss.
The proposal could give BTC Zcash-style confidentiality without changing Bitcoin consensus, challenging the case for dedicated privacy networks.
The flaw could expose merchants to unpaid deliveries, but sender funds remained safe and patches for both defects shipped before the 2026 disclosure.
The breach has already moved most stolen EVM-chain funds into ETH, concentrating $183M in a single recovery and liquidation challenge.
The reported loss puts exchange custody controls and market confidence back in focus.
Bitget says cold wallets and user funds remain secure, with its $464M protection fund covering the loss as withdrawals stay paused.
Withdrawals remain paused while Bitget investigates, but the exchange says its $464M-plus protection fund covers the loss and customer balances remain accurate.
Bitget says cold wallets and user funds remain secure, but withdrawals are paused while the exchange reviews unauthorized hot- and warm-wallet transfers.
Cold wallets remain secure, while Bitget says a $464M protection fund fully covers user assets as investigators trace the unauthorized transfers.
The suspension puts customer access and exchange security controls at the center of the incident, while the scale raises broader counterparty-risk concerns for crypto markets.
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