Here’s what happened in crypto today

In a tumultuous day for the cryptocurrency sector, headlines were dominated by significant legal action, major security breaches, and strategic divestments. KelpDAO has initiated a lawsuit against cross-chain protocol LayerZero and its CEO, Bryan Pellegrino, alleging that vulnerabilities in LayerZero’s security infrastructure were a direct cause of the approximately $292 million rsETH bridge exploit earlier this year. Simultaneously, the CEO of cryptocurrency exchange Bitget, Gracy Chen, has suggested that North Korean hackers may be responsible for the exchange’s recent $352 million hack, citing preliminary evidence linking IP addresses to VPN services utilized by a known North Korean cybercrime group. In a separate development, Sequans Communications has completed its exit from a Bitcoin treasury strategy, having sold its remaining 314 Bitcoin holdings, marking the end of an initiative that once saw the company hold over 3,200 BTC.

The legal battle initiated by KelpDAO against LayerZero centers on the significant losses incurred due to the rsETH bridge exploit. KelpDAO, a decentralized finance (DeFi) protocol, formally filed the lawsuit, asserting that LayerZero failed to adequately disclose the inherent risks associated with its technology and did not implement sufficient measures to prevent attackers from compromising its infrastructure. According to statements made by KelpDAO, LayerZero had previously reviewed and provided written endorsement for the deployment and configuration of the rsETH bridge prior to the exploit. The lawsuit explicitly names Bryan Pellegrino, co-founder and CEO of LayerZero, as a defendant.

"Our number one priority has always been and will remain the security of our users’ assets," a representative from KelpDAO stated. "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." In response to the lawsuit, Bryan Pellegrino has publicly dismissed the claims as "meritless" and indicated his intention to vigorously defend the case. The legal dispute represents an escalation of an ongoing disagreement regarding the precise cause of the exploit, with questions remaining as to whether the loss was solely attributable to the compromise of LayerZero’s infrastructure, flaws in KelpDAO’s bridge configuration, or a combination of both factors. The outcome of this lawsuit could have significant implications for the responsibilities and liabilities of cross-chain infrastructure providers within the DeFi space.

In parallel, the cryptocurrency exchange Bitget is grappling with the aftermath of a substantial security breach, which resulted in the loss of $351.6 million. CEO Gracy Chen has pointed towards North Korea as a potential perpetrator, based on initial investigative findings. During a live question-and-answer session held on X (formerly Twitter) following the incident, Chen revealed that security investigators had identified similarities between the attack and previous operations attributed to North Korean cybercriminal groups. Specifically, preliminary data indicated that certain IP addresses used in the hack correlated with VPN services commonly employed by a North Korean entity. Chen emphasized that the exchange does not believe the breach to be an inside job, further strengthening the external attacker hypothesis.

This suspicion is bolstered by a history of significant crypto thefts linked to North Korea. In 2025, North Korean hackers were estimated to have stolen approximately $2.02 billion in cryptocurrency, including a colossal $1.5 billion hack of the Bybit exchange, which the FBI subsequently attributed to North Korea. The FBI has also urged the private cryptocurrency sector to block transactions associated with North Korean actors, citing their use of Lazarus Group for laundering illicit funds. The Bitget breach involved unauthorized transfers affecting portions of the exchange’s hot and warm wallet infrastructure. As of the time of publication, withdrawal services remain suspended. During the Q&A session, Chen also disclosed that some of the stolen funds had been recovered, though she did not specify the exact amount. She affirmed that Bitget is actively collaborating with various blockchain foundations and other industry partners to facilitate recovery efforts.

In a strategic shift, Sequans Communications, a French semiconductor company, has divested its remaining 314 Bitcoin holdings, thereby concluding its cryptocurrency treasury strategy. This move signifies the complete liquidation of the company’s Bitcoin assets, which at their peak amounted to over 3,200 BTC. The sale was completed on Thursday, following the redemption of its convertible debt in May. Sequans has stated that it will now reorient its focus towards its core businesses in cellular Internet of Things (IoT) and software-defined radio.

Sequans originally embarked on its Bitcoin treasury strategy in June 2025, shortly after securing a $384 million equity and debt financing round. At the time, CEO Georges Karam had described Bitcoin as a "compelling long-term investment." However, the company began to unwind this position less than six months later, selling 970 BTC to cover half of its convertible debt obligations. Sequans’ decision to exit its Bitcoin strategy aligns with a broader trend observed among several companies that are reversing or scaling back their cryptocurrency treasury holdings. Research from VanEck indicates that by late July, at least nine companies had either fully liquidated or abandoned their Bitcoin and crypto strategies. Other notable companies that have completely liquidated their Bitcoin holdings this year include Bitdeer, Genius Group, and Prenetics. While MARA Holdings and Empery Digital have also made substantial sales of their Bitcoin holdings, they have not entirely abandoned their crypto strategies. This trend suggests a recalibration of corporate treasury management strategies in response to market volatility and evolving investment landscapes.