LayerZero Concludes Legal Battle with FTX, Shifts Focus to Development – BitRss

LayerZero (ZRO) has announced its settlement with FTX ($0.00)’s bankruptcy proceedings, following a protracted legal struggle. CEO Bryan Pellegrino confirmed that the process is now over, allowing the team to concentrate on advancing their projects.

Two-Year Legal Battle with FTX Ends

In 2022, prior to FTX’s bankruptcy filing, LayerZero had reached an agreement with Alameda Research. Under this agreement, Alameda returned its 5% stake in LayerZero in exchange for the cancellation of a $45 million debt owed to LayerZero. However, FTX’s bankruptcy estate filed a lawsuit against LayerZero, claiming this transaction occurred during Alameda’s financial collapse.

FTX argued that at the time of the lawsuit, the shares LayerZero received were worth $150 million, and the deal took place during a financial crisis. Additionally, a separate deal involving Alameda selling 100 million Stargate (STG) coins to LayerZero for $10 million, which was not completed, was also included in the lawsuit.