LayerZero Denies Responsibility as Kelp Shifts $292M Hack Blame to Approved Bridge Configuration

Restaking protocol Kelp has stated that LayerZero gave approval for the bridge infrastructure that ultimately became the target of a massive $292 million security breach. The exploit, which security researchers have linked to North Korean threat actors, has sparked a dispute over responsibility between the two protocols. Following the incident, Kelp made the decision to abandon LayerZero’s Omnichain Fungible Token standard and transition its rsETH token to Chainlink’s Cross-Chain Interoperability Protocol for future bridging operations. The controversy centers on whether LayerZero’s approval process for bridge configurations was sufficient to prevent such a large-scale attack. This incident highlights ongoing vulnerabilities in cross-chain infrastructure, particularly as bridges remain attractive targets for sophisticated hacking groups. The attribution to North Korean hackers follows a pattern of state-sponsored crypto theft that has netted billions of dollars in recent years, often funding weapons programs. Kelp’s migration to Chainlink’s CCIP represents a significant vote of no confidence in LayerZero’s security architecture, though the full technical details of the vulnerability have not been publicly disclosed. The restaking sector, which has grown rapidly, now faces increased scrutiny over its security practices. Watch whether other protocols follow Kelp’s lead in abandoning LayerZero’s bridging solution in favor of alternatives.

Source: CoinDesk | This article has been independently rewritten by Block Digest. Original reporting credit to the source.

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