Evercrest Technologies Sues LayerZero Over $292 Million rsETH Bridge Exploit

Evercrest Technologies, the company that operates the restaking protocol KelpDAO, has taken legal action against LayerZero Labs Ltd., LayerZero Labs Canada Inc., and co‑founder Bryan Pellegrino. The civil claim was filed in the Supreme Court of British Columbia and centers on an exploit that occurred in April, when a bridge linking KelpDAO’s infrastructure to Unichain was compromised.

Details of the Exploit

The attack moved 116,500 rsETH through the bridge, an amount valued at approximately $292 million at the time of the breach. KelpDAO alleges that LayerZero reviewed and endorsed a bridge configuration that relied on a single Decentralized Verifier Network (DVN), creating a single point of failure.

Allegations in the Lawsuit

Evercrest’s filing accuses LayerZero of negligence, negligent misrepresentation, and defamation. Specifically, the claim states that LayerZero failed to warn KelpDAO about the risks of the one‑DVN setup and later shifted blame onto KelpDAO for the loss.

Legal Implications for Cross‑Chain Security

Bridge failures have traditionally been treated as technical incidents. This lawsuit could set a precedent by bringing infrastructure‑provider advice and security recommendations into the legal arena, potentially redefining liability for cross‑chain interoperability services.

Current Status

No court ruling has been issued, and the allegations remain unproven. The case marks the beginning of a legal process that may influence how future bridge security responsibilities are assessed.