Evercrest sues LayerZero over KelpDAO’s $292 million bridge exploit

  • Evercrest Technologies filed a civil claim against LayerZero entities and Bryan Pellegrino.
  • The April exploit drained 116,500 rsETH, worth about $292 million at the time.
  • Projects tied to $14.5 billion announced LayerZero moves; some transfers remain incomplete.

Evercrest Technologies, the company behind KelpDAO, has filed a civil claim in the Supreme Court of British Columbia against LayerZero Labs Ltd., LayerZero Labs Canada Inc. and co-founder Bryan Pellegrino over an April bridge exploit that moved 116,500 rsETH, worth about $292 million at the time. Evercrest alleges LayerZero reviewed and endorsed a bridge configuration using a single Decentralized Verifier Network, or DVN, and later blamed KelpDAO for adopting it. The claim alleges negligence, negligent misrepresentation and defamation, but the allegations have not been proven in court and LayerZero has not been found liable. Projects tied to $14.5 billion have announced plans to move away from LayerZero following the exploit, although some transfers remain incomplete. The dispute could bring legal scrutiny to the responsibilities of infrastructure providers that review or recommend security configurations for third-party applications.

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