Kelp DAO is set to contest LayerZero's assertion that Kelp's use of a single-verifier setup led to a $290 million rsETH bridge exploit. According to NS3.AI, a source with knowledge of the situation revealed that Kelp intends to argue that the compromised DVN infrastructure was constructed and operated by LayerZero, not Kelp. The exploit resulted in the loss of 116,500 rsETH from Kelp's LayerZero-powered bridge, although Kelp stated that its core restaking contracts remained unaffected. In response, LayerZero announced it will cease signing messages for applications that continue to use a single-verifier setup, necessitating a protocol-wide migration.