LayerZero CEO Confirms Settlement with FTX Estate, ZRO Price Jumps 5%

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LayerZero CEO Confirms Settlement With FTX Estate, ZRO Price Jumps 5% – Crypto News

Published

1 year ago

January 31, 2025

Dripp

January 31, 2025 — LayerZero CEO Bryan Pellegrino took to X on Friday to confirm the settlement agreement with FTX estate. He added that the firm has returned the original repurchase amount to the bankruptcy estate after a two-year legal battle and legal fees worth millions.

LayerZero Reaches Settlement with FTX over Alameda Deal

LayerZero Labs, an omnichain interoperability protocol, was sued by FTX estate in 2023 to claw back over $86 million. Prior to the FTX collapse, the firm made a shales sell deal with Alameda Research forgiving a $45 million loan to Alameda.

Bryan Pellegrino on X said they have reached a settlement with FTX estate for creditors. LayerZero has fought for two long years and paid millions in legal fees in the lawsuit.

“After more than two long years and millions in legal fees (lawyers always win) we have reached a settlement agreement with the FTX estate. Ultimately we decided this was not us vs FTX which is a fight we feel completely justified in, but it was us vs the creditors (which also we are one of),” he said.

Bryan Pellegrino’s Note to Investors

Moreover, Bryan Pellegrino reminded investors about locked Stargate Finance (STG) tokens purchased to transfer to Stargate Foundation. The decision to sell or transfer depend on the community.

As per a tweet in 2022, LayerZero has $107 million in direct cash balance and $27 million in on-chain funds. The company added that it can run for over 7 years even in weak market conditions.

Meanwhile, FTX has also announced starting $16 billion in repayments to creditors. The first round of FTX repayments will happen for creditors with claims below $50,000. FTX creditor Sunil Kavuri expects the first round of repayments in early February.

ZRO Price Jumps 5%

ZRO price jumped 5% after LayerZero announed the news. The price is currently trading at $3.80, with a 24-hour low and high are $3.58 and $3.76, respectively. However, the trading volume remains 17% low over the last 24 hours, indicating a decline in interest among traders.

Derivatives market data from Coinglass indicates buying of ZRO futures. Open interest has climbed more than 2% in just an hour to $48.46 million.