KelpDAO blames LayerZero infrastructure for $292M rsETH hack, shifts to Chainlink CCIP
Summary
KelpDAO is embroiled in a dispute with LayerZero following a $292 million exploit of its rsETH token. While LayerZero attributes the incident to KelpDAO’s specific bridge configuration and a single DVN setup—possibly involving the Lazarus Group—KelpDAO argues that this configuration was standard practice recommended by LayerZero’s own documentation. The exploit involved the compromise of offchain RPC nodes, leading to unauthorized fund releases. In response to the breach and the resulting liquidity stress across DeFi lending markets like Aave, KelpDAO has announced a migration of its cross-chain operations to Chainlink CCIP to bolster its security infrastructure.
(Source:Crypto Briefing)