ZRO faces sell pressure as whale deposits clash with broader exchange outflows.
LayerZero price is on the edge as bears tighten control, pushing ZRO toward a critical support breakdown. The latest 6% drop comes amid weakening recovery attempts and rising sell-side signals, with price now hovering near the $1.35 zone.
KelpDAO exploit has hurt the sentiment around ZRO and put bearish pressure on the altcoin.
On what grounds did KelpDAO blame LayerZero for its $294 million exploit?
A $292M exploit on KelpDAO exposes a massive LayerZero vulnerability. With 47% of apps at risk, are your assets still safe in the crypto space?
LayerZero is facing heavy criticism for its response to the recent $290 million KelpDAO exploit after the omnichain interoperability protocol blamed Kelp's 1-of-1 verifier configuration for the incident. Related Reading: Bitcoin's Decentralization Narrative Under Fire After Epstein Files Claims LayerZero Blames KelpDAO For $290M Exploit Over the weekend, liquid restaking protocol KelpDAO was the victim of an attack that drained over $290 million in rsETH from the project after malicious actors exploited a weakness in the protocol's LayerZero-powered bridge.
The KelpDAO cross-chain bridge was drained of 292 million dollars over a weekend. A surgically precise attack, attributed by LayerZero to the notorious North Korean Lazarus group.
LayerZero said a roughly $290 million security incident tied to KelpDAO likely involved a state-linked actor associated with North Korea's Lazarus Group—an event that is rippling into broader concerns about DeFi leverage, oracle risk, and the restaking ecosystem's growing integration with major lending venues. In a post on X on April 20 UTC, LayerZero stated that KelpDAO was attacked and that early findings suggest tactics consistent with ‘TraderTraitor,' a Lazarus-linked cluster often cited in investigations of high-end, state-sponsored intrusions.
DeFi bridge security is under sharper pressure after a major exploit exposed structural weaknesses in verifier design and infrastructure dependencies. The fallout is widening accountability questions for Layerzero Labs and reinforcing concerns about concentrated validation models. Key Takeaways: Layerzero framed the exploit as infrastructure failure, weakening confidence in bridge security models.
Attackers forged a cross-chain message, came within minutes of a second drain, and wiped their tracks on the way out.
KelpDAO's $290 million rsETH exploit has moved into a new phase, with LayerZero and Aave now publicly outlining how the incident unfolded, why the damage appears contained, and what it could mean for crypto cross-chain security standards going forward.
LayerZero said the attackers compromised two RPC nodes the company's verifier relied on and DDoS'd the rest, with the attack working only because Kelp had ignored multi-verifier recommendations.