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

According to LayerZero, the protocol issued a public apology on Friday for its handling of the April 18 exploit that drained $292 million in rsETH from Kelp DAO's cross-chain bridge, marking a significant tonal shift from its earlier post-mortem. LayerZero acknowledged that its Decentralized Verifier Network (DVN) should not have served as the sole verifier for high-value transactions, stating: "We made a mistake by allowing our DVN to act as a 1/1 DVN for high-value transactions." The company revealed that North Korea's Lazarus Group had compromised its internal RPC nodes while simultaneously launching a DDoS attack against external providers, forcing the DVN to rely on poisoned infrastructure.

LayerZero outlined remediation steps: its DVN will no longer service 1/1 configurations, default settings are migrating to require at least five verifiers where possible, and the company plans to upgrade its multisig threshold from 3-of-5 to 7-of-10 using OneSig. The exploit affected approximately 0.14% of applications on the network and 0.36% of total assets, with more than $9 billion having moved across the protocol since April 19.