DeFi | Major Crypto Exchange Replaces Popular Cross-Chain DeFi Infrastructure Following Kelp DAO Exploit

Crypto exchange, Kraken, said it was replacing cross-chain messaging provider, LayerZero, with Chainlink’s Cross-Chain Interoperability Protocol (CCIP), becoming the latest major crypto firm to distance itself from LayerZero following last month’s $292 million Kelp DAO exploit.

Kraken said Chainlink CCIP would become the exclusive cross-chain infrastructure for its wrapped Bitcoin token, kBTC, as well as any future wrapped assets issued by the exchange. The company added that it selected Chainlink’s infrastructure for its ‘enterprise-grade’ security and risk management features, including decentralized node operations and built-in safeguards.

The move follows heightened scrutiny on LayerZero after hackers linked to North Korea’s Lazarus Group allegedly exploited infrastructure connected to liquid restaking protocol Kelp DAO in April 2026 leading to the theft of roughly $292 million in assets. LayerZero later acknowledged communication failures surrounding the incident and admitted weaknesses tied to the configuration used during the attack.

Kraken joins a growing list of protocols migrating away from LayerZero.

• Kelp DAO,
• Solv Protocol, and
• on-chain reinsurance protocol, Re

have also announced plans to adopt Chainlink CCIP in recent weeks.

According to industry reports, more than $3 billion in total value locked has shifted toward Chainlink’s interoperability infrastructure since the exploit.

Kraken said holders of kBTC, which is backed 1:1 by Bitcoin custodied by the exchange, would not need to take any action during the migration process. The token currently has a market capitalization of more than $260 million, according to market data.

The migration marks another setback for LayerZero, once one of crypto’s fastest-growing interoperability projects, as institutional and decentralized finance firms increasingly prioritize security and risk controls in cross-chain infrastructure following a series of high-profile bridge exploits.

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