LayerZero Abandons 14 Chains After $292M KelpDAO Hack Triggers $15B Exodus

The withdrawal follows the KelpDAO exploit in April 2026, which resulted in the theft of approximately ₹2,300 crore ($292 million) from the bridge, representing one of the largest DeFi exploits in 2026. The exploit stemmed from LayerZero's recommended "1-of-1" DVN setup, which doesn't provide enough verification before large minting or fund transfers are approved. Since the same loophole can be used with low-adopted reserve assets, Aave has stopped supporting most of them, including ghost chains. Following the exploit, LayerZero's bridged volume dropped 4x from nearly 400K ETH to about 100K ETH, highlighting the massive impact on the company's core business. The security concerns have prompted several projects to migrate from LayerZero to rival Chainlink CCIP (Cross-Chain Interoperability Protocol), with Chainlink's Zach Rynes estimating that a total of $15 billion has been migrated from LayerZero since the KelpDAO fallout.

Wyoming has completed the migration of its Frontier Stable Token (FRNT) from LayerZero to Chainlink's Cross-Chain Interoperability Protocol (CCIP) following a comprehensive security review. The state's decision to replace Layer Zero Stargate with Chainlink CCIP represents a significant upgrade for Wyoming's public-sector digital dollar infrastructure, as reported by AMBCrypto. CEO Daniel Celeda described the move as a long-term infrastructure decision tied to the responsibilities carried by node operators, stating that "Being a node operator carries real responsibility for a network's reliability, and that's consistent with how we approach every engineering commitment we make." The commission cited Layer Zero's security practices and lack of disclosure as primary reasons for the decision, with the migration affecting a relatively small asset despite its unusual status as public-sector digital dollar infrastructure. This migration follows the broader trend of projects moving from LayerZero to Chainlink CCIP after security reviews, with Wyoming's FRNT migration adding to the $15 billion in assets that have moved from LayerZero to Chainlink CCIP since the KelpDAO exploit.

Under the multiyear contract signed by Wyoming officials, Chainlink CCIP will now provide FRNT's exclusive cross-chain infrastructure with minimum validation requirements of 16 independent operators for every transfer. According to AMBCrypto, this enhanced validation system ensures that FRNT will be able to transfer between all supported networks including Ethereum, Solana, Base, and other blockchain networks under one unified framework. The commission's November 8, 2023 letter from Wyoming's Select Committee on Blockchain, Financial Technology, and Digital Innovation Technology had encouraged adoption of a "multi-chain, technology-neutral approach" for deploying its stable token. FRNT remains available across eight public blockchains, including Arbitrum, Avalanche, Base, Ethereum, Hedera, Optimism, Polygon, and Solana networks. The token's capitalization remains below $1 million, as reported by crypto.news, though its addition to CCIP's existing stablecoin network provides a clear reference point for future cross-chain movements.

The commission cited CCIP's monitoring systems, built-in risk controls and redundant validation as key factors in the decision. Chainlink states that every CCIP transaction receives validation from at least 16 independent node operators. The company also lists SOC 2 Type 2 certification among its institutional controls. This contrasts with LayerZero's infrastructure, which was compromised in the April attack that resulted in the theft of approximately 116,500 rsETH worth about $292 million from Kelp DAO's bridge. LayerZero's aggressive move to wind down support for over 30 chains may be viewed as a strategic play to reduce its security risk exposure and counter Chainlink CCIP's growing competition after the KelpDAO exploit. Chainlink CCIP is designed to offer high-assurance security features, including risk management and decentralized oracle networks, which are critical for government-issued digital assets*, as reported by CoinDesk. Chainlink CCIP is built on the same decentralized oracle network infrastructure that has enabled over $33 trillion in transaction value and secures the vast majority of decentralized finance.

Sergey Nazarov, Co-Founder of Chainlink, expressed excitement about Wyoming's decision, stating "I'm very excited that the State of Wyoming has upgraded Frontier Stable Token to Chainlink CCIP as its exclusive cross-chain infrastructure." He noted that Wyoming has consistently been a leader in digital asset policy and public-sector blockchain adoption, and their selection of CCIP shows that governments and serious institutions need secure, reliable infrastructure to move digital assets across chains at scale. "This is another important step toward a globally connected onchain financial system, and we look forward to working with the Commission to help define the next generation of financial markets," Nazarov stated. The migration is also consistent with Wyoming's ongoing effort to maintain a multi-chain approach to FRNT, as the state previously encouraged the Commission to remain technology-neutral when selecting blockchain networks. The commission has not published the full security review or detailed deprecation schedule, though future notices are expected to clarify how legacy contracts and cross-chain routes will be retired. Whether LayerZero's aggressive withdrawal of support for over 30 chains will be enough to stop its top projects from migrating to Chainlink remains to be seen, as reported by AMBCrypto.