Wyoming Stable Token Commission cites LayerZero security failures in switch to Chainlink CCIP

The Wyoming Stable Token Commission has moved its state issued FRNT stable token away from LayerZero and onto Chainlink CCIP after a security review found what the agency described as repeated operational failures at LayerZero Labs. The Commission said the review followed the $292 million LayerZero exploit involving KelpDAO, where DPRK affiliated attackers compromised infrastructure operated by LayerZero Labs and used a forged message to release funds on Ethereum. According to the Commission, its review uncovered additional concerns around access controls, private key management and incident disclosures. It said LayerZero Labs failed to transfer a production authorization to the Commission and did not maintain proper control of a critical private key tied to a live FRNT deployment. The Commission ultimately concluded that LayerZero no longer met the security standards required for infrastructure supporting a state backed digital asset. It said the protocol placed too much responsibility on individual developers to configure their own security and could leave deployments dependent on a single verifier or a small verifier set. FRNT is the first state issued US dollar backed stable to...