LayerZero an interoperability infrastructure, has been in the eye of the storm lately due to a massive exploitation on the Kelp DAO platform which resulted in about a $292 million loss.
Kelp DAO and
LayerZero are embroiled in a blame game, with each accusing the other as the reason behind the exploit. LayerZero has laid blame on
North Korea’s Lazarus group for this
DeFi hacking incident. Interestingly, it also blamed Kelp’s risky setup for the $290 million theft. On the contrary, Kelp DAO insisted LayerZero was responsible for the breach, stating their systems were not involved. LayerZero’s native token
ZRO has struggled in the aftermath, with prices taking a hit. There has been a fallout in the DeFi space as well, leading to a decline in DeFi markets and impacting trust. However, amidst the crisis, LayerZero continues to get noteworthy backing.
Tether has announced strategic investment into LayerZero Labs, and it was also supported by
Citadel Securities and
Ark Invest. A
Lazarus group tied to a whopping $292 million exploit brings into focus the vulnerability of the DeFi space. LayerZero claims to see no vulnerability in their system and holds the Kelp setup as the cause of the exploit. Overall, the incident has raised critical discussions about security in the DeFi market and highlighted the need for heightened precautions when it comes to setting up financial systems.
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