Evercrest Technologies, the company behind KelpDAO, has filed a lawsuit in British Columbia against LayerZero Labs, its Canadian affiliate and CEO Bryan Pellegrino over an April exploit involving rsETH. The claim seeks $292 million and alleges negligent misrepresentation, negligence and defamation, along with aggravated and punitive damages. Evercrest also says KelpDAO users have withdrawn more than $650 million since the attack. The legal action comes as nearly $15 billion is reportedly moving away from LayerZero, placing renewed attention on the cross-chain protocol’s security model and oversight. Pellegrino has responded to the allegations, although the available report does not provide the substance of his comments. The case remains an allegation, and no court finding has been reported. LayerZero’s native token is ZRO.
