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Kelp says the exploit originated from LayerZero operated infrastructure, while LayerZero says the attack was tied to Kelp’s single DVN setup.
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KelpDAO said LayerZero approved the bridge configuration later blamed for the $292 million rsETH exploit, escalating a dispute over responsibility for one of DeFi’s largest cross chain security failures this year.
The dispute centers on the April 18 exploit that drained about 116,500 rsETH from KelpDAO’s LayerZero bridge. Chainalysis said the attack was not a smart contract hack, but an attack on offchain infrastructure in which attackers compromised internal RPC nodes and used false data to trick a 1 of 1 DVN setup into releasing funds against a nonexistent burn.
