LayerZero Reaches Settlement with FTX Estate After Two-Year Negotiation
Bryan Pellegrino, CEO of LayerZero, announced a settlement with the FTX estate after two years of negotiations and legal expenses. The decision to settle was made to focus on business development rather than legal battles.
- LayerZero returned the original repurchase to the FTX estate.
- Pellegrino confirmed that LayerZero bought out FTX, FTX Ventures, and Alameda's entire equity position, including token warrants and other agreements.
- FTX had filed a lawsuit against LayerZero for withdrawing over $21.3 million in cryptocurrency deposits prior to its collapse.
- LayerZero holds $107 million in direct cash deposits and $27 million in on-chain funds, with 90% in stablecoins.
- LayerZero purchased locked STG tokens from an auction linked to Alameda Research and proposed transferring them to the Stargate Foundation.
- The firm considers $11.5 million previously operational on FTX as essentially lost, despite potential recoverability.
- LayerZero claims it has seven years of financial runway even under aggressive spending scenarios.