Evercrest Technologies, behind KelpDAO, has sued LayerZero Labs, its Canadian affiliate, and CEO Bryan Pellegrino in British Columbia over the April $292 million rsETH exploit. The claim alleges negligent misrepresentation, negligence and defamation, and says Kelp users have withdrawn more than $650 million since the attack. Projects tied to roughly $14.5 billion in assets have announced moves from LayerZero to Chainlink’s CCIP. The case tests who bears losses when customer-set security and provider infrastructure fail together, an issue that extends beyond bridges to any automated protocol relying on identifiable companies for oracles, custody, or cloud hosting.
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