Share this article
FTX-Backed Crypto Unicorn LayerZero Bought Out Stake
The interoperability protocol sent a memo to investors outlining its buyout strategy.
By Brandy Betz
Updated May 9, 2023, 4:02 a.m. Published Nov 10, 2022, 7:12 p.m.
In May, blockchain interoperability protocol LayerZero raised $135 million at a $1 billion valuation in a funding round that was co-led by FTX Ventures. The implosion of crypto exchange FTX – and the empire of its CEO, Sam Bankman-Fried – raised questions about its venture capital arm and the fate of its portfolio companies.
LayerZero CEO Bryan Pellegrino answered the question on Thursday, tweeting out a memo that was sent out to the startup’s investors. LayerZero structured an agreement and bought out FTX, FTX Ventures and sister firm Alameda Research from all equity positions, token warrants and all other agreements between the parties.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
LayerZero currently has about $107 million in direct cash balance and $27 million in on-chain funds primarily in stablecoins for a total of $134 million. An additional $11.5 million was on FTX and used operationally, but LayerZero said it is treating this as $0 for “the sake of sanity” and expects that some of that money will be recoverable.
Pellegrino wrote that the startup has “at least [seven] years of runway even in our aggressive projections.”
Read more: The Collapse of the FTX Empire
Mais para você
O que saber:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Michael Saylor's Strategy Hangs on to Spot in Nasdaq 100 Index
The annual Nasdaq 100 rebalance saw six companies dropped and three new additions, with changes taking effect on December 22, but bitcoin treasury company Strategy hung onto its spot.
What to know:
- Strategy (MSTR) will remain in the Nasdaq 100 index despite a major reshuffle, which saw several household names dropped.
- The firm's business model, which involves stockpiling bitcoin, has drawn criticism from analysts and index providers, with MSCI considering excluding crypto treasury companies from its benchmarks.
- The Nasdaq 100 rebalance saw six companies dropped and three new additions, with changes taking effect on December 22, but Strategy's bitcoin-heavy strategy secured its spot.
Top Stories
