LayerZero CEO Announces Settlement with FTX Estate
LayerZero CEO Bryan Pellegrino confirmed a settlement with FTX after two years of spending millions on legal fees.
LayerZero has bought out FTX, FTX Ventures, and Alameda from all the agreements with the firm.
LayerZero has a massive $107 million in direct cash deposits and is cash-rich, stated Pellegrino.
Bryan Pellegrino, the chief executive of the LayerZero, has announced a settlement with the FTX estate. The settlement was reached after two years of intense negotiations and millions spent on legal fees, confirmed Pellegrino. He added that his firm decided to settle because it was the best course of action and fighting a legal battle “was not us.”
In a post on X (formerly Twitter), the LayerZero chief executive that the “original repurchase has been returned to the estate”, while highlighting that he is “happy to have less calls with lawyers and full focus towards building”. Pellegrino also sent out a memo to the investors in LayerZero Labs, :
“We’ve worked around the clock for the past 72 hours to structure an agreement and have bought FTX/FTX Ventures/Alameda out of 100% of their equity position, token warrants, and any and all agreements between us.”
“We’ve worked around the clock for the past 72 hours to structure an agreement and have bought FTX/FTX Ventures/Alameda out of 100% of their equity position, token warrants, and any and all agreements between us.”
FTX filed a lawsuit against LayerZero because the latter withdrew more than $21.3 million in cryptocurrency deposits made in 2022. The exchange wants to claw back these funds, but Pellegrino stated in 2023 that FTX’s claims were “unsubstantiated.” It is important to note that the withdrawal took place in the 90 days leading up to the exchange’s collapse.
The transaction includes substantial amounts of APT , AVAX , BNB , BUSD, FTM, MATIC , USDC , and USDT . Court filings unveiled that FTX also wanted to claim $13.07 million from Ari Litan, the former chief executive at LayerZero, and $6.65 million from subsidiary Skip & Goose.
LayerZero Is Cash-Rich
LayerZero has also purchased the locked STG tokens from the community auction that FTX’s sister firm Alameda Research had. The firm is “putting up a proposal to transfer these to the Stargate Foundation pari passu and let the community decide what to do with them,” read the memo while revealing that LayerZero has a staggering $107 million in direct cash deposits along with $27 million in on-chain funds. 90% of these funds are in stablecoins.
The firm also has an additional $11.5 million that was on that was used operationally. However, “for the sake of sanity”, Pellegrino considers it $0, ignoring the fact that some amount on the dollar is likely recoverable.
The meme stated that LayerZero has seven years of runway even in the most aggressive of expenditures while taking the firm ahead of its competitors, who are “cash-strapped, scared, and questioning the future of the industry.”