Kelp DAO Disputes LayerZero's Claims Regarding $290 Million Exploit

A recent crypto exploit has sparked a heated debate between Kelp DAO and LayerZero, with each party blaming the other for the massive $290 million loss. According to sources, Kelp DAO plans to counter LayerZero's claims that it was responsible for the exploit due to its use of a single-verifier setup. Instead, Kelp DAO argues that the compromised verifier was part of LayerZero's own infrastructure and that the setup in question was the default configuration provided by LayerZero. The incident occurred when attackers drained 116,500 rsETH, worth approximately $290 million, from Kelp's LayerZero-powered bridge by compromising two of LayerZero's servers. Kelp DAO claims that it relied on LayerZero's documentation and guidance when configuring its setup and that the default configuration provided by LayerZero was used by 40% of protocols on the platform. Security researchers have also questioned LayerZero's claims, with one researcher pointing out that LayerZero's reference setup ships with single-source verification defaults across every major chain. The incident has led to a wider debate about the security of cross-chain messaging infrastructure and the need for greater transparency and accountability in the crypto industry.