Cryptoslate iconCryptoslateSep 26, 2026

Nearly $15B is moving off LayerZero, now a $292M lawsuit puts its security model on trial

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. 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negligent misrepresentation, negligence and defamation, seeks aggravated and punitive damages, and says Kelp users have withdrawn more than $650 million since the attack.

Nearly $15B is moving off LayerZero, now a $292M lawsuit puts its security model on trial

Share this story

Send the public story page.

Useful takeaways from this story.

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.

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negligent misrepresentation, negligence and defamation, seeks aggravated and punitive damages, and says Kelp users have withdrawn more than $650 million since the attack.

Building the complete brief

The page is ready to read now. The fuller skim-friendly version will appear here automatically.

The useful part

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. 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negligent misrepresentation, negligence and defamation, seeks aggravated and punitive damages, and says Kelp users have withdrawn more than $650 million since the attack.

Keep reading in the app

Open the app view to save this story, compare related coverage, and continue from the same source.

Open in app