Evercrest Technologies, the company behind KelpDAO, has filed a civil claim in the Supreme Court of British Columbia against LayerZero Labs, its Canadian subsidiary and co-founder Bryan Pellegrino. The firm alleges negligent misrepresentation, negligence and defamation in connection with the $292 million hack that drained funds from the restaking protocol in April. According to Evercrest, the attacker placed malware on a LayerZero developer’s computer on March 6, then manipulated LayerZero’s nodes before exploiting the single-verifier setup that LayerZero itself had endorsed to mint 116,500 unbacked rsETH. Evercrest paused the bridges within about an hour, limiting further damage. The company is seeking over 2,000 ETH to restore rsETH’s backing, as well as damages for the more than $650 million withdrawn since the exploit and the fall of the KERNEL token.
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