Eleanor Terrett Discusses Crypto Regulation Post-Clarity Act

Today in crypto, security and regulation dominated headlines.KelpDAO sued LayerZero and its CEO over the $292 million rsETH bridge exploit as Bitget’s CEO pointed to possible North Korean involvement in the exchange’s $352 million hack. Meanwhile, Sequans abandoned its Bitcoin treasury strategy after selling its remaining holdings.KelpDAO sues LayerZero, CEO over $292 million rsETH bridge exploitKelpDAO has filed a lawsuit against cross-chain protocol LayerZero following the roughly $292 million exploit of its rsETH bridge earlier this year, alleging that failures in LayerZero’s security infrastructure contributed to the attack.KelpDAO said Friday that LayerZero failed to disclose risks in its technology or prevent attackers from compromising its infrastructure. It also alleged that LayerZero had reviewed and endorsed its deployment and configuration in writing before the exploit.The lawsuit also names LayerZero co-founder and CEO Bryan Pellegrino.“Our number one priority has always been and will remain the security of our users’ assets,” Kelp wrote. “But we also need to correct the record, and hold LayerZero and Mr. Pellegrino accountable for the harm they have caused us and the broader DeFi ecosystem.”Pellegrino called the claim “meritless” and said he would defend the case in Vancouver. The lawsuit escalates a months-long dispute over whether the loss was caused by the compromise of LayerZero’s infrastructure, KelpDAO’s bridge configuration, or both.Bitget CEO suspects North Korea behind $352 million hack, citing IP cluesBitget CEO Gracy Chen said North Korean hackers may be behind the exchange’s $351.6 million security breach on Thursday, citing preliminary findings linking IP addresses to VPN services used by a North Korean group. Speaking during a live Q&A following the incident on X, Chen said security investigators had flagged similarities with previous North Korean attacks. She said the exchange did not believe the breach was an inside job. “We’ve identified some IP addresses that match the VPN choices by a certain DPRK group,” Chen said, referring to the Democratic People’s Republic of Korea.North Korean hackers were linked to an estimated $2.02 billion in crypto theft in 2025, including the roughly $1.5 billion Bybit exchange hack, which the FBI attributed to North Korea. The comments come after Bitget reported unauthorized transfers affecting portions of its hot and warm wallet infrastructure on Thursday. Withdrawals remain suspended at the time of publication.During the Q&A, Chen also said some stolen funds had been recovered, without specifying an amount. She said the exchange was working with blockchain foundations and other partners on recovery efforts.Sequans sells its last Bitcoin, ending treasury strategySequans Communications has sold its remaining 314 Bitcoin, completing its exit from a treasury strategy that once held more than 3,200 BTC.The French semiconductor company said Thursday that the sale follows the redemption of its convertible debt in May and leaves it with no cryptocurrency holdings. Sequans will now refocus on its cellular internet-of-things and software-defined radio businesses.Sequans launched its Bitcoin strategy in June 2025 after announcing a $384 million equity and debt raise, with CEO Georges Karam calling Bitcoin a “compelling long-term investment.” It began unwinding the position less than six months later, selling 970 BTC to repay half its convertible debt.Sequans joins a growing list of companies reversing or scaling back crypto treasury strategies in 2026. VanEck digital assets research head Matthew Sigel identified at least nine companies that had fully liquidated or abandoned their Bitcoin and crypto strategies by late July.Bitdeer, Genius Group and Prenetics have also fully liquidated their Bitcoin holdings this year, while MARA Holdings and Empery Digital have made substantial sales without abandoning their strategies.