$292 Million Attack Lands in Court: Altcoin Project Sues LayerZero and CEO

KelpDAO has sued LayerZero and its CEO, Bryan Pellegrino, following the roughly $292 million rsETH bridge attack, putting its alleged written approval before the attack at the center of the case.

According to Wu Blockchain, Evercrest (KelpDAO) filed a civil lawsuit against LayerZero and Pellegrino in the Canadian province of British Columbia. The dispute over responsibility that began after the attack has now moved to court.

CEO Responds to Claim of Written Approval

KelpDAO alleges that LayerZero failed to disclose risks associated with the technology used and could not prevent its security infrastructure from being compromised. The complaint also states that LayerZero reviewed and approved KelpDAO’s setup and configuration in writing. These are the plaintiff’s allegations; the source contains no court ruling determining responsibility.

Pellegrino confirmed that a lawsuit had been filed against him and LayerZero, calling the allegations baseless. The CEO said he would defend himself and the company in Vancouver.

Attack Took Place in April

The lawsuit concerns the attack on the KelpDAO rsETH bridge, built on LayerZero infrastructure, in April 2026. Approximately 116,500 rsETH was stolen from the bridge, which is used to transfer assets between blockchains. The assets were worth approximately $292 million at the time of the attack. This latest development is not another attack, but a legal proceeding over responsibility for the incident.