LayerZero Hit with Lawsuit Over $292 Million rsETH Heist

Evercrest (KelpDAO) has filed a civil claim against LayerZero and its CEO Bryan Pellegrino in British Columbia. The lawsuit stems from a security breach that occurred on April 2026, which resulted in approximately 116,500 rsETH being stolen, worth around $292 million at the time.

KelpDAO alleges that LayerZero failed to disclose potential technology risks and neglected to prevent its security infrastructure from being compromised after reviewing and approving KelpDAO's deployment and configuration in writing.

CEO Bryan Pellegrino has responded to the claims, stating they are 'meritless' and that he will defend the case in Vancouver.