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 regarding 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 liquid restaking protocol claims that it relied on LayerZero's documentation and default settings when configuring its system. 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. Kelp contends that the setup that was compromised was based on LayerZero's default configuration, which is also used by 40% of protocols on the platform. Security researchers have also questioned LayerZero's framing of the incident, with some accusing the company of deflecting responsibility. The controversy has sparked a wider debate about the security of cryptocurrency platforms and the need for greater transparency and accountability.