LayerZero CEO announces settlement with FTX estate

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1.1. LayerZero CEO Announces Settlement with FTX Estate

LayerZero CEO Announces Settlement with FTX Estate

March 8, 2023

LayerZero CEO Bryan Pellegrino has announced a settlement with the FTX estate, resolving a dispute over the ownership of certain assets. The settlement, which was approved by the bankruptcy court, will see LayerZero pay $25 million to the FTX estate in exchange for the release of all claims against the company.

The dispute arose after FTX filed for bankruptcy in November 2022. As part of the bankruptcy proceedings, the FTX estate claimed ownership of certain assets that LayerZero had acquired from FTX prior to the bankruptcy filing. LayerZero disputed the estate's claims, arguing that it had acquired the assets in good faith and without knowledge of FTX's financial difficulties.

The settlement resolves the dispute and allows LayerZero to continue operating its business without the threat of litigation. The settlement also provides the FTX estate with a significant recovery of funds that can be used to repay creditors.

In a statement, Pellegrino said that he was pleased to have reached a settlement with the FTX estate. He added that the settlement allows LayerZero to move forward with its business and continue to build the future of cross-chain interoperability.

The settlement is a significant development in the FTX bankruptcy proceedings. It is one of the first major settlements to be reached between the FTX estate and a third party. The settlement is also a sign that the FTX estate is making progress in its efforts to recover funds for creditors.