Wyoming Ditches LayerZero Over Security Concerns

The Wyoming Stable Token Commission has moved its state-issued FRNT stable token away from LayerZero due to repeated operational failures and security concerns. A security review found that LayerZero Labs had failed to transfer a production authorization to the Commission, did not maintain proper control of a critical private key tied to a live FRNT deployment, and placed too much responsibility on individual developers to configure their own security.

The $292 million LayerZero exploit involving KelpDAO, where DPRK-affiliated attackers compromised infrastructure operated by LayerZero Labs and used a forged message to release funds on Ethereum, was also a major concern for the Commission. The review found additional issues with access controls, private key management, and incident disclosures.

The Commission ultimately concluded that LayerZero no longer met the security standards required for infrastructure supporting a state-backed digital asset. It selected Chainlink Cross Chain Interoperability Protocol as FRNT's exclusive cross-chain infrastructure due to its decentralized network of independent node operators, rate limits, external audits, and direct issuer control over token contracts and implementation logic.