Evercrest Sues LayerZero Over $292M rsETH Exploit

Evercrest Technologies has filed a lawsuit against LayerZero Labs, its Canadian affiliate, and CEO Bryan Pellegrino over a $292 million exploit that occurred in April. The incident involved an attacker compromising infrastructure used by LayerZero's verifier, which released 116,500 rsETH tokens due to a configuration requiring only one attestation.

According to the lawsuit, LayerZero reviewed and endorsed KelpDAO's 1-of-1 verifier setup without disclosing related risks. This allegedly led to the April 18 attack, which began at 1:35 p.m. ET (17:35 UTC).

Pellegrino has described the claim as 'meritless.'

The lawsuit alleges negligent misrepresentation, negligence, and defamation, seeking aggravated and punitive damages but does not specify a damages amount.