Kelp DAO Disputes LayerZero's Account of $290M rsETH Bridge Exploit

Kelp DAO said it will challenge LayerZero's explanation of the roughly $290 million vulnerability tied to the rsETH crosschain bridge, arguing the compromised single-validator setup depended on LayerZero's own infrastructure and was included in its standard onboarding offering, not an implementation choice that diverged from Kelp DAO's guidance. According to CoinDesk, the attacker took about 116,500 rsETH after gaining control of LayerZero servers used to validate crosschain transactions and disabling backup nodes. Kelp DAO said the breach was limited to the LayerZero-based bridging layer and did not impact its core liquid staking contract. LayerZero said it will stop signing messages for any application operating with a single-validator configuration and will require affected projects to migrate to stronger security settings.