In a blog post, the Vancouver crypto firm said it has “done a terrible job” with communications since a hack that drained about US$300 million from a crypto lending protocol last month. The company also conceded that it “made a mistake” by letting one of its security components act as the sole checkpoint for high-value transactions. (The Logic)

Talking point: The post is a significant walkback from LayerZero’s initial response, which blamed crypto protocol Kelp DAO for setting up the sole security checkpoint against the company’s advice. The company also disclosed that three and a half years ago, someone accidentally used a LayerZero security device to make a personal trade, which the company said “is obviously not OK.” LayerZero raised US$120 million at a US$3-billion valuation in 2023 and the company says its software has been used to move more than US$260 billion worth of crypto. The hack has sparked a crisis of faith among participants in decentralized finance (DeFi), which replicates elements of the traditional finance system using blockchain technology.