KelpDAO sues LayerZero for the largest exploit 2026 has seen so far
60-second summary
KelpDAO sues LayerZero, alleging the cross‑chain messaging platform and co‑founder Brian Pellegrino concealed protocol vulnerabilities that enabled a $292 million exploit, the largest breach of 2026. The lawsuit claims negligent disclosure caused massive user losses and eroded trust in interoperable DeFi services, prompting investors to reassess risk exposure and demand stronger security audits across the industry.
The cross-chain lending protocol accused LayerZero and its co-founder Brian Pellegrino of failing to disclose weaknesses in their protocol, which led to the $292 million hack.