Kelp DAO Blames LayerZero’s 'Default' Settings for $290 Million Bridge Disaster


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CRYPTO TECH – The blame game has reached a boiling point in the crypto world following the massive $290 million exploit of the rsETH bridge. Kelp DAO is now firing back at LayerZero, claiming the disaster was caused by LayerZero’s own infrastructure and "default" configurations.

The Core of the Dispute

LayerZero’s post-mortem initially blamed Kelp DAO for choosing a "single-verifier" setup. However, Kelp disputes this, stating that this setup was actually LayerZero’s onboarding default and relied entirely on LayerZero’s own compromised servers.

"The compromised verifier was LayerZero's own infrastructure. We used the setup recommended in their own quickstart guides," a source close to Kelp DAO revealed.

Protocol-Wide Migration

Security researchers highlight that LayerZero’s reference setup ships with single-source verification defaults across major chains like Ethereum and Arbitrum. Following the hack, LayerZero has vowed to stop signing messages for any application using this configuration, forcing a massive migration across the DeFi ecosystem.

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