Just before its collapse, LayerZero resolved its dispute with the FTX estate regarding its agreement with Alameda. The price of ZRO has increased by 5%.
January 31, 2025— At X on Friday, LayerZero CEO Bryan Pellegrino verified the settlement agreement with the FTX estate. He also stated that the firm had refunded the original repurchase amount to the bankruptcy estate after a two-year legal dispute and legal fees totaling millions.
LayerZero and FTX Reach Settlement Regarding Alameda Agreement
A lawsuit was filed by the FTX estate in 2023 against LayerZero Labs, an omnichannel interoperability protocol, to recover more than $86 million. The firm executed a shales sale agreement with Alameda Research before the FTX collapse, in which it forgave Alameda a $45 million loan.
Bryan Pellegrino announced on X that a settlement had been reached with the FTX estate to benefit creditors. LayerZero has waged a protracted legal battle for two years and has incurred millions in legal fees.
“We have reached a settlement agreement with the FTX estate after more than two years and millions in legal fees (lawyers always win).” He stated, “Ultimately, we determined that this was not a conflict between us and FTX, which we are entirely justified in engaging in, but rather a conflict between us and the creditors, of which we are also a part.”
Note to Investors by Bryan Pellegrino
Additionally, Bryan Pellegrino reminded investors of the locked Stargate Finance (STG) tokens purchased to transfer them to the Stargate Foundation. The decision to sell or transfer is contingent upon the community.
According to a tweet from 2022, LayerZero has $27 million in on-chain funds and $107 million in direct cash balance. The company stated that it can operate for more than seven years in poor market conditions.
In the interim, FTX has also disclosed that it will commence repayments to creditors of $16 billion. The initial FTX repayments will be conducted for creditors with claims worth less than $50,000. Sunil Kavuri, the creditor of FTX, anticipates that the initial installment of repayments will be made in early February.
The price of ZRO has increased by 5%
There was a 5% increase in the price of ZRO following the announcement by LayerZero. The price currently trades at $3.80, with a 24-hour low of $3.58 and a high of $3.76. Nevertheless, the trading volume has remained at a low of 17% over the past 24 hours, suggesting a decrease in interest among traders.
The derivatives market data from Coinglass indicate the purchases of ZRO futures. Open interest has increased by over 2% in a single hour to $48.46 million.
