An Altcoin Will Be Blamed for the Major Crypto Hack That Occurred Over the Weekend – Revealed in the Memos

A new development has emerged in the large-scale security breach crisis originating from KelpDAO. According to an internal memo reviewed by CoinDesk, KelpDAO is allegedly preparing to shift responsibility for the approximately $292 million rsETH breach that occurred on Saturday to LayerZero.

According to the memo, KelpDAO stated that it relied on LayerZero’s documentation, default configurations, and team guidance when building its bridging infrastructure. Therefore, it is implied that the infrastructure and integration processes used were at the root of the security breach.

As you may recall, the security breach on the rsETH bridge triggered a chain reaction in the DeFi ecosystem, leading to liquidity pressure and “bad debt” concerns in many protocols, particularly Aave. Following the incident, billions of dollars worth of assets were withdrawn from Aave, and utilization rates in some pools reached 100%.

KelpDAO’s move, which points to LayerZero, has raised potential legal and technical liability issues, but neither party has yet issued an official and detailed statement.

*This is not investment advice.