The post LayerZero Ends FTX Dispute, Refocuses on Growth appeared on BitcoinEthereumNews.com.

After over two years of legal battles and millions in legal fees, LayerZero Labs has reached a settlement agreement with the FTX estate. With its legal disputes behind it, LayerZero now focuses on expanding its omnichain infrastructure. Its ability to maintain its leadership in blockchain interoperability will be a key factor in its continued success. FTX vs. LayerZero Background The dispute dates back to March 2022, when FTX Ventures participated in LayerZero Labs’ $135 million funding round. Alameda Ventures, FTX’s sister trading firm, invested over $70 million between January and May 2022 to acquire a 4.92% stake in LayerZero.   Alameda also purchased $100 million worth of Stargate Finance (STG) tokens for $25 million and received a $45 million loan from LayerZero at 8% annual interest. Following FTX’s collapse in November 2022, LayerZero attempted to buy back its stake from Alameda by canceling the $45 million loan. This move and its significant withdrawals in the months leading up to FTX’s bankruptcy triggered legal action from the FTX estate. The exchange ought to reclaim the assets. As it happened, FTX estate accused LayerZero of exploiting Alameda Research’s financial difficulties. “LayerZero sought to capitalize on Alameda Research’s distressed financial position by demanding immediate repayment of its $45 million loan to Alameda Research,” an excerpt in the filing read. The lawsuit sought to recover $21.37 million in funds LayerZero withdrew from FTX in the 90 days before the exchange’s bankruptcy. Additionally, it sought $13.07 million from former LayerZero COO Ari Litan and $6.65 million from its subsidiary, Skip & Goose. Latest Settlement Details Brian Pellegrino, co-founder and CEO of LayerZero Labs, confirmed the agreement in a post on X (Twitter), articulating the return of the initial purchase. He also committed to focusing on LayerZero’s ecosystem growth. “After more than two long years and millions…

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Filed under: News - @ January 31, 2025 1:22 pm