Kelp DAO Disputes LayerZero's Claim of Responsibility for $290 Million Disaster

A recent cryptocurrency exploit has sparked a heated debate between Kelp DAO and LayerZero, with Kelp set to contest LayerZero's post-mortem of the $290 million disaster. According to a source familiar with the matter, Kelp plans to argue that the compromised verifier was part of LayerZero's own infrastructure, rather than a third-party verifier. 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 verify transactions. Kelp claims that the setup used was based on LayerZero's default configuration, which is also used by 40% of protocols on the platform. The incident has raised questions about the security of cross-chain messaging infrastructure and the responsibility of platforms in preventing such disasters. Security researchers have also criticized LayerZero's handling of the incident, with some accusing the company of deflecting responsibility and blaming Kelp for trusting a setup that LayerZero itself supported.