KelpDAO Service Entity Sues LayerZero Over $292M Exploit ๐จโ๏ธ
Evercrest, a service entity behind liquid restaking protocol KelpDAO, filed a civil claim in British Columbia against LayerZero Labs and CEO Bryan Pellegrino ๐๏ธ๐
The lawsuit traces back to an exploit on 18 April 2026, when attackers drained roughly 116,500 rsETH (worth about $292M at the time) from KelpDAO's cross-chain bridge ๐ธ๐
The legal clash focuses on who holds responsibility when bridge connections fail:
๐ถ Evercrest claims LayerZero hid technical flaws and failed to protect verifier systems.
๐ท Bryan Pellegrino called the claim meritless and confirmed he will defend it in Vancouver.
๐ธ The attack exploited a single verifier setup (one checkpoint approving transfers).
This case could set a massive legal precedent across DeFi. If protocol teams can sue infrastructure providers in court over exploits, liability for cross-chain security will shift permanently ๐ก๏ธโ๏ธ
Should infrastructure providers be held liable for DeFi hacks? ๐
#DeFi #LayerZero #Ethereum #CryptoNews
Evercrest, a service entity behind liquid restaking protocol KelpDAO, filed a civil claim in British Columbia against LayerZero Labs and CEO Bryan Pellegrino ๐๏ธ๐
The lawsuit traces back to an exploit on 18 April 2026, when attackers drained roughly 116,500 rsETH (worth about $292M at the time) from KelpDAO's cross-chain bridge ๐ธ๐
The legal clash focuses on who holds responsibility when bridge connections fail:
๐ถ Evercrest claims LayerZero hid technical flaws and failed to protect verifier systems.
๐ท Bryan Pellegrino called the claim meritless and confirmed he will defend it in Vancouver.
๐ธ The attack exploited a single verifier setup (one checkpoint approving transfers).
This case could set a massive legal precedent across DeFi. If protocol teams can sue infrastructure providers in court over exploits, liability for cross-chain security will shift permanently ๐ก๏ธโ๏ธ
Should infrastructure providers be held liable for DeFi hacks? ๐
#DeFi #LayerZero #Ethereum #CryptoNews
