#KelpDAO Sues LayerZero
Cross-chain lending protocol KelpDAO has sued LayerZero and its co-founder Brian Pellegrino, alleging they failed to disclose weaknesses in the agreement, after $292 million was stolen. The claims have not yet been recognized by the court, and LayerZero’s side has said it has not yet obtained the information.
The real point of interest in this kind of lawsuit is the boundary of liability: once a court recognizes the disclosure obligation for vulnerabilities in a cross-chain bridge, any protocol that relies on third-party message layers will need to re-evaluate counterparty risk. At this stage it is only a lawsuit filing, and there has been no conclusion yet about who is responsible.
$XRP $PENGU $QI
Cross-chain lending protocol KelpDAO has sued LayerZero and its co-founder Brian Pellegrino, alleging they failed to disclose weaknesses in the agreement, after $292 million was stolen. The claims have not yet been recognized by the court, and LayerZero’s side has said it has not yet obtained the information.
The real point of interest in this kind of lawsuit is the boundary of liability: once a court recognizes the disclosure obligation for vulnerabilities in a cross-chain bridge, any protocol that relies on third-party message layers will need to re-evaluate counterparty risk. At this stage it is only a lawsuit filing, and there has been no conclusion yet about who is responsible.
$XRP $PENGU $QI
