Wyoming State Token Switches from LayerZero to Chainlink CCIP Over Security Concerns
The Wyoming Stable Token Commission has removed its state-issued FRNT stable token from LayerZero after a security review revealed repeated operational failures. The $292 million exploit involving KelpDAO in LayerZero's infrastructure was a key concern for the agency.
A thorough examination by the Commission uncovered additional issues with access controls, private key management, and incident disclosures at LayerZero Labs. Specifically, the protocol failed to transfer a production authorization to the Commission and lost control of a critical private key tied to a live FRNT deployment.
The agency deemed that LayerZero no longer met its security standards for supporting state-backed digital assets. It cited concerns about placing too much responsibility on individual developers to configure their own security, potentially leading to deployments relying on a single verifier or small set of verifiers.