KelpDAO Developer Sues LayerZero Over $292M Bridge Exploit
Evercrest Technologies, the company behind KelpDAO, has sued LayerZero and CEO Bryan Pellegrino in British Columbia over the April exploit that drained $292 million from its restaking protocol. Evercrest alleges LayerZero approved in writing the exact 1-of-1 bridge configuration it later blamed, then publicly shifted responsibility after the attack. The claim includes negligent misrepresentation, negligence, and defamation, and seeks aggravated and punitive damages. According to the filing, LayerZero instructed Evercrest to use its default verifier setup, said there was “no problem” with it, and later warned another project about similar risks without warning Evercrest. Evercrest says the exploit began with malware on a LayerZero developer’s computer, allowing attackers to tamper with verifier inputs and mint unbacked rsETH. The suit also targets public statements by LayerZero and Pellegrino as defamatory. LayerZero says the claim is meritless; no response has been filed.
