LayerZero Labs has reached a settlement with the FTX estate regarding transactions from 2022 with Alameda Research. CEO Bryan Pellegrino stated that after extensive legal battles and millions in legal fees, they decided to resolve the matter, which revolved around funds that LayerZero allegedly withdrew prior to FTX's collapse in November 2022. FTX had initially sought over $21 million but LayerZero ultimately agreed to return the original repurchase to the estate. In 2022, Alameda Ventures had purchased a 5% equity stake in LayerZero for $70 million, with some transactions still under dispute following FTX's bankruptcy filing. The settlement reflects a necessity to address creditors' claims, leading to LayerZero's decision to return the funds involved, as they are also creditors themselves. The FTX estate's reorganization plan allows for user claims under $50,000 to be repaid within 60 days. Concurrently, several criminal cases against former FTX executives have concluded with significant sentences being handed down.

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