Kelp Blames LayerZero for $292 Million Hack, Plans Switch to Chainlink

The story

The protocol shift comes as a $71 million court fight continues to unfold.

From the source

Price data by In brief Kelp says LayerZero approved the setup tied to a $292 million exploit, which LayerZero disputes. The protocol is redesigning its cross-chain system after the hack. A U.S. court fight over $71 million in frozen funds could shape DeFi recovery rules. KelpDAO is blaming LayerZero for a $292 million exploit and plans to relaunch with a redesigned cross-chain system on Chainlink , the group announced on X on Tuesday.

“From the April 18 incident, it is clear that LayerZero s own infrastructure was exploited, resulting in $300M in losses across DeFi,” Kelp DAO wrote on X. “Independent reports from SEAL 911, Chainalysis, and other major leading security researchers all point to the same origin.”

In April, an attack drained about 116,500 rsETH—an Ethereum-based staking token—from a cross-chain bridge used by Kelp, a protocol that lets users stake Ethereum and move tokens between blockchains. The exploit has been linked to North Korea’s Lazarus Group.

Who and what

Key names and topics in this story: Kelp Blames LayerZero, Million Hack, Plans Switch, Chainlink.

Where to follow next

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