LayerZero CEO emphasized that the fight was ultimately between LayerZero and FTX creditors, of which LayerZero is also one.
On Friday January 31, 2025, Bryan Pellegrino, the Chief Executive Officer of LayerZero, announced via X the confirmation of a settlement agreement with the FTX estate.
He stated that the company has reimbursed the original repurchase amount to the bankruptcy estate following a protracted two-year legal dispute, which incurred legal fees totaling millions.
LayerZero Reaches Settlement with FTX over Alameda Deal
In 2023, LayerZero Labs, an omnichain interoperability protocol, faced legal action from the FTX estate, which sought to recover more than $86 million.
Prior to the FTX collapse, the firm made a shales sell agreement with Alameda Research forgiving a $45 million loan to Alameda. Bryan Pellegrino announced on X that the FTX estate and the creditors have reached a settlement.
LayerZero has engaged in a protracted legal battle lasting two years and has incurred millions of dollars in legal expenses as a result of the lawsuit.“
After more than two long years and millions in legal fees (lawyers always win), we have reached a settlement agreement with the FTX estate.
In addition, Bryan Pellegrino provided investors with information about the sealed Stargate Finance (STG) tokens, which he acquired with the intention of transferring them to the Stargate Foundation.
The determination to sell or transfer is contingent upon the community. According to a tweet from 2022, LayerZero possesses a direct cash balance of $107 million and $27 million in on-chain assets.
The company further stated that it is capable of operating for more than seven years, even in adverse market conditions. Concurrently, FTX has announced the initiation of $16 billion in repayments to its creditors.
FTX will conduct the initial phase of repayments for creditors whose claims are less than $50,000. Sunil Kavuri, a creditor of FTX, anticipates that the initial round of repayments will occur in early February.
ZRO Price Jumps 5%
Following LayerZero’s announcement, the price of ZRO experienced a 5% increase. The current trading price is $3.80, with a 24-hour low of $3.58 and a high of $3.76, respectively.
Nevertheless, the trading volume has experienced a 17% decrease over the past 24 hours, signifying a waning interest among traders. Data from Coinglass pertaining to the derivatives market indicates an increase in the purchasing activity of ZRO futures.
Open interest has increased by over 2% within a single hour, reaching a total of $48.46 million.
