WuBlockchain
Evercrest, known as KelpDAO, filed a civil claim in British Columbia against LayerZero and its co-founder and CEO, Bryan Pellegrino. The lawsuit concerns the April 2026 exploit of KelpDAO’s rsETH bridge, built on LayerZero, which resulted in the theft of about 116,500 rsETH, then worth approximately $292 million.
Why it matters
KelpDAO alleges LayerZero failed to disclose risks in its technology or prevent its security infrastructure from being compromised, despite reviewing and approving KelpDAO’s deployment and configuration in writing. The claim puts the parties’ prior technical review and approval at the center of the dispute over responsibility for the exploit.
Market impact
LayerZero’s Pellegrino called the claims meritless and said he would defend the case in Vancouver. The two sides had already disputed responsibility for the incident. The legal case now gives that disagreement a formal forum, with the allegations still to be tested.
Frequently asked questions
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Where did KelpDAO file its civil claim against LayerZero?
Evercrest, known as KelpDAO, filed the claim in British Columbia, Canada.
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How much rsETH was stolen in the bridge exploit?
About 116,500 rsETH was stolen. It was worth approximately $292 million at the time.
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What does KelpDAO allege LayerZero did wrong?
KelpDAO alleges LayerZero failed to disclose technology risks or prevent its security infrastructure from being compromised, despite reviewing and approving the deployment and configuration in writing.
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How has LayerZero CEO Bryan Pellegrino responded?
Pellegrino called the claims meritless and said he would defend the case in Vancouver.
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Has responsibility for the rsETH exploit been established?
No. The two sides have disputed responsibility, and KelpDAO’s allegations in the civil claim have yet to be tested.
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