KelpDAO Sues LayerZero Over $292M Hack, Alleges Undisclosed Vulnerabilities

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KelpDAO has filed a lawsuit against cross-chain messaging protocol LayerZero and its co-founder Brian Pellegrino. The lending protocol alleges that LayerZero knowingly failed to disclose critical security weaknesses in its system. These undisclosed vulnerabilities are said to have enabled what has become the largest crypto exploit of 2026 so far. The breach resulted in losses of approximately $292 million for KelpDAO. The lawsuit marks a significant legal escalation in the aftermath of the attack.

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