Evercrest Technologies Files Lawsuit Against LayerZero Over $292M Exploit
- Evercrest Technologies has initiated a civil claim against LayerZero Labs Ltd., its Canadian arm, and co-founder Bryan Pellegrino in the Supreme Court of British Columbia.
- The lawsuit alleges negligent misrepresentation, negligence, and defamation related to an exploit that drained $292 million from KelpDAO’s restaking protocol in April.
- The attack reportedly began with malware on a LayerZero developer’s computer, leading to false readings and unbacked token minting.
- LayerZero had advised Evercrest to use a single-verifier setup despite later attributing the exploit to this configuration.
- Evercrest claims damages including a contribution of 2,000 ETH to restore rsETH’s backing and over $650 million withdrawn since the incident.
Evercrest Technologies has taken legal action against LayerZero following a significant exploit that resulted in substantial financial losses for KelpDAO. The lawsuit centers around allegations of negligence and defamation by LayerZero, which had previously endorsed a bridge configuration now blamed for the breach.
The case highlights critical security concerns within blockchain protocols, as Evercrest seeks compensation for damages incurred due to the exploit’s impact on their operations and token value. (Source)
