KELPDAO SUES LAYERZERO: $292M rsETH HACK HEADS TO COURT The biggest DeFi exploit of 2026 is now the biggest DeFi lawsuit of 2026. WHAT HAPPENED: On September 24, 2026, KelpDAO filed a civil claim in British Columbia, Canada, against LayerZero Labs and its CEO Bryan Pellegrino, who is named personally. KelpDAO filed through its legal entity, Evercrest Technologies Inc. The case concerns the April 18 exploit that drained 116,500 $RSETH , worth about $292M at the time. The attack is attributed to North Korea's Lazarus Group. KELPDAO'S CLAIMS: 🔹 LayerZero failed to disclose risks in its own technology 🔹 LayerZero failed to stop attackers from infiltrating its security infrastructure 🔹 LayerZero "reviewed and endorsed, in writing" Kelp's bridge setup 🔹 Kelp says it wants its "day in court," so no quick settlement is expected LAYERZERO'S DEFENSE: ❌ Pellegrino calls the claim "meritless" and says he will fight it in Vancouver ❌ LayerZero blames Kelp's single-verifier (1-of-1 DVN) setup About 47% of roughly 2,665 LayerZero apps ran the same 1-of-1 setup at the time of the hack. If nearly half the ecosystem used it, was this one team's mistake or an industry-wide flaw? LayerZero banned 1-of-1 setups only after the hack. Kelp has since moved rsETH to Chainlink CCIP. This case could set the first legal benchmark for who pays when DeFi infrastructure fails. Always check how many verifiers secure the bridges you use. One weak checkpoint can cost millions. Full complaint: https://drive.google.com/file/d/1fVSd7z0fF48bOiRB3EpmmVYi4omNY3iI/view Who's right: Kelp or LayerZero? 👇