LayerZero has been exposed for using multisignature wallets to trade Meme coins, and its default library contract upgrade mechanism poses risks.

CoinFeed reported on May 8th that, according to a post by crypto KOL Fishy Catfish, LayerZero Labs co-founder and CEO Bryan Pellegrino had a heated debate with security researchers in the ETHSecurity Community Telegram group. The core controversy included: LayerZero Labs can immediately upgrade a default library contract without time constraints to forge messages (similar to the rsETH hack), putting over $3 billion worth of LZ OFT at risk of being stolen; researcher Banteg pointed out that mainstream projects like Ethena and EtherFi were still using this default library contract weeks ago, and $178 million worth of these funds remain exposed to risk, originating from projects still using this default library.