LayerZero · Supreme Court · United Kingdom · The Block
KelpDAO sues LayerZero, argues it endorsed setup applied in $292 million rsETH exploit
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★ Tier-1 Source
Evercrest Technologies, the company behind KelpDAO, filed a notice of civil claim in the Supreme Court of British Columbia on Thursday against LayerZero Labs Ltd., LayerZero Labs Canada Inc., and co-founder Bryan Pellegrino.
Key facts
- The filing alleges negligent misrepresentation, negligence, and defamation tied to the April 18 exploit of 116,500 rsETH, worth approximately $292 million at the time
- The attack unfolded on April 18 at about 17:35 UTC, according to the claim
- The filing claims that LayerZero reviewed and endorsed the 1-of-1 decentralized verifier network, or DVN, configuration used by the Unichain bridge that was exploited
- Evercrest alleges LayerZero told it in written communications on Feb. 2, 2024, that there was “no problem” with using the default DVN configuration
Summary
The filing alleges negligent misrepresentation, negligence, and defamation tied to the April 18 exploit of 116,500 rsETH, worth approximately $292 million at the time. "The exploit was not a failure of KelpDAO's systems," the notice of civil claim states. The filing claims that LayerZero reviewed and endorsed the 1-of-1 decentralized verifier network, or DVN, configuration used by the Unichain bridge that was exploited. Evercrest alleges LayerZero told it in written communications on Feb. 2, 2024, that there was “no problem” with using the default DVN configuration.