Evercrest Technologies, a developer for KelpDAO, has filed a lawsuit against LayerZero and its CEO, Bryan Pellegrino. The legal action follows an exploit of the rsETH bridge that resulted in the unauthorized minting of approximately $292 million in tokens on Ethereum.
According to the claim, the incident occurred on April 18, 2026, after attackers compromised a LayerZero developer machine on March 6. The lawsuit alleges that manipulated RPC data led the LayerZero Decentralized Verifier Network to falsely confirm that 116,500 rsETH were locked on Unichain.
Evercrest states it detected the breach within an hour, suspended its bridges, and prevented a second attempt to mint 40,000 rsETH. The developer disputes LayerZero's public stance, claiming the company followed LayerZero's written instructions to use a 1-of-1 DVN configuration.
The plaintiff reports significant financial fallout, including over $650 million in user withdrawals, reduced assets under management, and the closure of the sbUSD vault. Evercrest is seeking damages for claims including defamation and negligent provision of services.
