KelpDAO Service Entity Sues LayerZero Over $292M Exploit 🚨⚖️
Evercrest, a service entity behind liquid restaking protocol KelpDAO, filed a civil claim in British Columbia against LayerZero Labs and CEO Bryan Pellegrino 🏛️📄
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 💸📉
The legal clash focuses on who holds responsibility when bridge connections fail:
🔶 Evercrest claims LayerZero hid technical flaws and failed to protect verifier systems.
🔷 Bryan Pellegrino called the claim meritless and confirmed he will defend it in Vancouver.
🔸 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 🛡️⚖️
Should infrastructure providers be held liable for DeFi hacks? 👇
#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 🏛️📄
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 💸📉
The legal clash focuses on who holds responsibility when bridge connections fail:
🔶 Evercrest claims LayerZero hid technical flaws and failed to protect verifier systems.
🔷 Bryan Pellegrino called the claim meritless and confirmed he will defend it in Vancouver.
🔸 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 🛡️⚖️
Should infrastructure providers be held liable for DeFi hacks? 👇
#DeFi #LayerZero #Ethereum #CryptoNews
