# Evercrest Sues LayerZero Over $292 Million rsETH Exploit

By Simon Yoon

Canonical URL: https://www.tokenpost.com/news/technology/24424
Published: 2026-09-26T13:36:21.000Z
Updated: 2026-09-26T13:36:21.000Z
Section: Technology

> The British Columbia claim challenges LayerZero’s single-verifier security setup as projects tied to about $14.5 billion in assets announce moves to Chainlink’s CCIP.

Evercrest Technologies filed a civil claim against LayerZero Labs, LayerZero Labs Canada and CEO Bryan Pellegrino over an April exploit that released 116,500 rsETH worth about $292 million, putting LayerZero’s security configuration at the center of the dispute.

The claim, filed in the Supreme Court of British Columbia, alleges negligent misrepresentation, negligence and defamation. It says LayerZero reviewed and endorsed KelpDAO’s 1-of-1 verifier setup while failing to disclose related risks. The claim seeks aggravated and punitive damages but does not state a specific damages amount.

The April 18 attack began at 1:35 p.m. ET (17:35 UTC), after an intruder compromised infrastructure used by LayerZero’s verifier. Forged source-chain data was then attested, and KelpDAO’s destination contract released the tokens because its configuration required only one verifier.

LayerZero has said its protocol was not itself exploited and later acknowledged that allowing its verifier to operate alone for high-value transactions was a mistake. Pellegrino called the claim “meritless.”

The lawsuit follows announced migrations involving about $14.5 billion in assets from LayerZero to Chainlink’s Cross-Chain Interoperability Protocol, or CCIP, by Aug. 4. The total was later described as $15 billion, but the figures cover announced moves and do not establish that every transfer was completed.