LayerZero · Canada · United Kingdom · CryptoSlate
Nearly $15 billion is moving off LayerZero, now a $292 million lawsuit puts its security model on trial
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Evercrest Technologies, the company behind KelpDAO, has sued LayerZero Labs, its Canadian affiliate, and CEO Bryan Pellegrino in British Columbia over April's $292 million rsETH exploit.
Key facts
- LayerZero remains a large network, spanning 96 chains and $9.5 billion in bridged volume for the past 30 days, according to DefiLlama
- BitGo accounted for the largest migration, with WBTC making up about $7.4 billion of the Aug
- Evercrest Technologies, the company behind KelpDAO, has sued LayerZero Labs, its Canadian affiliate, and CEO Bryan Pellegrino in British Columbia over April's $292 million rsETH exploit
- Mantle, Kelp's rsETH and Lombard added billions more, and Chainlink puts the total near $15 billion
Summary
01 Kelp seeks damages over the $292M rsETH exploit and says users withdrew more than $650M. 02 About $14.5B in assets announced LayerZero-to-Chainlink migrations after the April attack. 03 The case tests who bears losses when customer-set security and provider infrastructure fail together. The claim alleges negligent misrepresentation, negligence and defamation, seeks aggravated and punitive damages, and says Kelp users have withdrawn more than $650 million since the attack.