LayerZero Issues Public Apology for Kelp DAO Exploit, Admits Single-Verifier Setup Fault

According to The Block, LayerZero issued a public apology Friday for its handling of the April 18 exploit that drained $292 million in rsETH from Kelp DAO’s cross-chain bridge. The protocol acknowledged it made a mistake by allowing its Decentralized Verifier Network to serve as the sole verifier for high-value transactions, reversing its earlier stance that blamed Kelp DAO’s configuration choices. LayerZero said the exploit affected roughly 0.14% of applications on the network and 0.36% of total assets using the protocol. The incident has prompted major protocol migrations; Kelp DAO and Solv Protocol have since moved their cross-chain infrastructure to Chainlink’s CCIP, citing security concerns.