LayerZero reaches settlement with FTX bankruptcy assets, repays $150 million in equity and waives $45 million in debt

According to The Block, LayerZero Labs has reached a settlement agreement with FTX's bankruptcy assets, ending a two-year legal dispute. Previously, FTX asset owners accused LayerZero of entering into a "fraudulent transaction" with Alameda Research in 2023, in which Alameda sold back its 5% stake (valued at $150 million at the time of the lawsuit) to LayerZero on the condition of canceling a $45 million loan just days before FTX's bankruptcy. Another transaction involving 100 million Stargate tokens (with an initial cost of $25 million, discounted to $10 million for repurchase) has not been completed. Bryan Pellegrino, co-founder of LayerZero, stated that he has returned the original equity repurchase funds to the FTX asset owners and stated that "after the settlement, we can focus on technology development".