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.
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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The dispute puts bridge security design and LayerZero’s alleged assurances under scrutiny, as KelpDAO says users have withdrawn more than $650M since the attack.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.
ATLAS turns ZRO from a cross-chain governance token into a direct claim on platform revenue. 75% of post-rebate fees buy and burn ZRO, with the top rebate tier staking up to 1% of supply.
The $49B headline is the nominal face value of unbacked tokens an attacker minted via a hijacked LayerZero delegate; real supply impact is under 0.01%, but Bithumb and Upbit suspensions show the…
The Wyoming Stable Token Commission is the first US public entity to swap blockchain infrastructure on security grounds, joining a $15B migration wave triggered by the $292M Kelp DAO exploit.
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 integration lets commercial bank money move natively between Ethereum, Solana, Base, and Keeta, with USD plus eight more fiat rails slated for late-month rollout.
The first Bank of Korea hike in over three years is the macro anchor, while a $2.4M LayerZero wallet breach and Summer.fi shutdown put DeFi risk back on the table.
The milestone matters less for the number than for what it signals: $4.1B in circulation is now moving natively across two dozen chains, not bridged.
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.
The protocol's code worked; the bridge that delivered 116,500 unbacked rsETH didn't — and Aave's response reframes where DeFi risk actually sits now.
The week's project rundown spans a user-safety upgrade on Ethereum, a new Solana venue, a quiet LayerZero exodus, and Dune's 25% head-count cut — four moving pieces, no single narrative.
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 capital flight — triggered by April's $292M Kelp DAO exploit — is reshaping the cross-chain bridge market, with Chainlink's CCIP picking up clients and scrutiny that LayerZero once dominated.
Four products including Kraken Bitcoin have already swapped LayerZero cross-chain rails in the wake of the Kelp DAO attack, and a $2.57B combined TVL is the real signal of how much weight is moving.
Three protocols with $2.3B combined just walked — the first measurable TVL migration since LayerZero admitted a Lazarus-linked RPC exploit and a 1/1 DVN misconfiguration.
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.