Kelp DAO Sues LayerZero Over $292M rsETH Exploit

Kelp DAO, through parent Evercrest Technologies, filed a civil claim in the Supreme Court of British Columbia against LayerZero Labs and co-founder Bryan Pellegrino, alleging negligence, negligent misrepresentation and defamation. In April 2026 attackers minted 116,500 rsETH worth $292 million via a forged cross-chain message that bypassed the bridge's 1-of-1 verifier setup.

• Claim filed in the Supreme Court of British Columbia against LayerZero Labs and Bryan Pellegrino
• 116,500 rsETH worth $292 million minted — about 18% of the 630,000 token supply
• Exploit used a forged message and a 1-of-1 verifier bridge configuration
• DeFi total value locked fell by more than $14 billion after the exploit