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Evercrest sues LayerZero over $292M rsETH exploit as withdrawals top $650M
Evercrest says users have withdrawn more than $650 million since the April rsETH breach, and it points to nearly $14.5 billion in LayerZero-linked assets moving to Chainlink’s CCIP by Aug. 4.
Evercrest Technologies, the company behind KelpDAO, has filed a lawsuit in British Columbia against LayerZero Labs and LayerZero CEO Bryan Pellegrino over an April rsETH exploit, CryptoSlate reports. Evercrest’s complaint alleges negligent misrepresentation, negligence, and defamation, and it seeks aggravated and punitive damages.
The lawsuit is tied to a reported $292 million compromise, which Evercrest says resulted in more than $650 million in withdrawals by Kelp users since the attack. Evercrest also described the incident as beginning when attackers tricked LayerZero’s verifier into approving a forged cross-chain transfer on April 18.
According to Evercrest’s account in the case, the intrusion followed a developer being socially engineered into cloning a malicious GitHub repository in March. The attackers then reached LayerZero’s RPC environment, poisoned internal nodes, and took an external RPC provider offline, leading the verifier to sign a message based on false source-chain data.
The filing also highlights a widening response from the ecosystem. By Aug. 4, projects tied to roughly $14.5 billion in assets had announced moves from LayerZero to Chainlink’s CCIP, nearly 50 times the amount stolen, and the lawsuit asks a court to resolve a responsibility dispute that customers have been pricing since April.