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

A recent cryptocurrency exploit has sparked a heated debate between Kelp DAO and LayerZero, with Kelp set to refute LayerZero's claim that it was responsible for 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 and that the setup was based on LayerZero's default configuration. The exploit 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 compromised infrastructure was built and run by LayerZero, not Kelp, and that the 1/1 configuration used was based on LayerZero's own quickstart guide and default GitHub configuration. Security researchers have also questioned LayerZero's framing of the incident, with some accusing the company of deflecting responsibility for its own compromised infrastructure. The incident has sparked a wider debate about the security of cryptocurrency infrastructure and the need for greater transparency and accountability.