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MarketPublished by KAS Watch · September 26, 2026

KelpDAO Sues LayerZero Over Alleged Protocol Flaws Following $292M Exploit

Cross-chain lending protocol KelpDAO has filed a lawsuit against LayerZero and co-founder Bryan Pellegrino, alleging undisclosed vulnerabilities contributed to a $292 million hack. The legal action marks a major dispute following one of 2026's largest security incidents.

Why it matters for the market

Major cross-chain exploits and resulting legal disputes can pressure broader DeFi risk appetite and liquidity across crypto markets. For Kaspa, such sector-wide contagion risks generally channel through broader market sentiment rather than direct protocol exposure.

Original source

CoinDesk
Source publication · September 25, 2026 · 1 verified source
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LayerZeroKelpDAOExploitDeFiSecurityLawsuit
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