LayerZero Faces $292M KelpDAO Lawsuit as $14.5B Moves
The case puts provider guidance and customer configuration at the center of bridge security, as major projects shift assets toward Chainlink CCIP.
Every Zipp story tagged #KelpDAO, newest first.
The case puts provider guidance and customer configuration at the center of bridge security, as major projects shift assets toward Chainlink CCIP.
The dispute puts bridge security design and LayerZero’s alleged assurances under scrutiny, as KelpDAO says users have withdrawn more than $650M since the attack.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.
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.
Active RWA use in DeFi has bounced back to roughly $3.77B, close to pre-April levels, but the recovery masks thin depth: private credit and a handful of CLO products still dominate.
The exploit is a KelpDAO incident, but the structural story is the $3B rotating to Chainlink's CCIP as DeFi projects dump LayerZero for cross-chain messaging.
A new risk framework for Aave is under proposal following an exploit involving KelpDAO, a liquid restaking protocol…
Five storylines from the week that matter for DeFi: Hyperliquid's perp volume peaks, Radiant Capital plans a wind-down, Polymarket alleges Kalshi espionage, Kelp DAO's bridge loses funds, and the…
Only ~$1.7M remains in the original wallets — the laundering path through THORChain, Wasabi, Tornado Cash, and Umbra has closed the window for direct transaction-level recovery.
Decentralized finance's total value locked has shed roughly 14% since the KelpDAO exploit rattled the restaking sector…
The contracts worked exactly as written — the problem was operational. As shared bridge infrastructure concentrates, a single LayerZero-adjacent weakness can cascade across the protocols sitting on…
The restart comes a week after a Lazarus-linked April 18 attack drained the restaking market's largest LRT — a clean recovery test for the DeFi lending stack that absorbed the impact.
The $292M Kelp DAO exploit exposed a single-verifier setup LayerZero now admits should never have shipped — and a 3.5-year-old multisig incident the protocol kept quiet until Friday.
The legal theory is binary: either the recovered ether belongs to Aave's users, or it belongs to North Korea — and Aave argues attribution to Lazarus Group is unproven, with $327M in industry…
After 116,500 rsETH were abnormally released in the April 18 bridge incident, the proposal leans on committed ETH funding plus a temporary oracle tweak to clear exploiter positions on Aave and…