Kelp DAO Shifts Blame to LayerZero for $290 Million Disaster, Citing Default Settings

A recent cryptocurrency exploit has sparked a heated debate, with Kelp DAO set to dispute LayerZero's claims that it was responsible for the $290 million disaster. According to a source familiar with the matter, Kelp DAO will argue that the compromised verifier was part of LayerZero's own infrastructure, and that the setup that was exploited was based on LayerZero's default configuration. The incident occurred when attackers drained 116,500 rsETH, worth approximately $290 million, from Kelp's LayerZero-powered bridge by poisoning the servers that LayerZero's verifier relied on to check transactions. Kelp DAO plans to counter LayerZero's post-mortem, which blamed Kelp for ignoring repeated warnings to move away from a single-verifier setup. Instead, Kelp will claim that the single-verifier setup was LayerZero's own default configuration, and that 40% of protocols on LayerZero are currently using the same setup. Security researchers have also come to Kelp's defense, with one stating that LayerZero's reference setup ships with single-source verification defaults across every major chain. The incident has highlighted the risks of relying on default configurations and the importance of robust security measures in the cryptocurrency space.