Search company, investor...

Predict your next investment

Venture Capital

Investments

21

About Alameda Ventures

Alameda Ventures is a venture capital firm in New Mexico.

Headquarters Location

191 Alameda Blvd

Albuquerque, New Mexico, 87114,

United States

505-897-2229

Are you an investor?
Submit your portfolio details now to be considered in our investor rankings.

Latest Alameda Ventures News

Crypto Industry Ramifications of FTX Suing LayerZero Labs

Sep 21, 2023

Thursday, 21/09/2023 | 14:15 GMT 0 Legaldisagreements can have far-reaching effects in the fast-paced world ofcryptocurrency and blockchain technology. The recent lawsuit brought by FTXagainst LayerZero Labs has piqued the interest of the crypto community. Whilelegal conflicts in the crypto realm are not uncommon, this case is gainingattention due to the high-profile nature of the people involved and thepotential repercussions for the broader industry . A BriefComparison of FTX and LayerZero Labs The caseinvolves FTX, a well-known cryptocurrency exchange, and LayerZero Labs, ablockchain development startup. LayerZero Labs, according to FTX, copied FTX'scode, trading techniques, and user interfaces for its decentralized exchange(DEX) called "ZTEx." FTX, created bySam Bankman-Fried and Gary Wang, has expanded fast in recent years and iswell-known for its cryptocurrency-related innovation. It provides a diverserange of trading instruments, including spot and derivatives markets, tokenizedequities, and options. LayerZero Labs,on the other hand, attracted notice for its efforts in developing a Layer 2scaling solution for Ethereum as well as the creation of ZTEx, a decentralizedexchange. The case stems from FTX's claim that LayerZero Labs illegallyduplicated its intellectual property, including proprietary code and tradingalgorithms, in the development of ZTEx. Keep Reading Innovationand Competition The lawsuitraises concerns about the crypto space's innovation and competition. While FTXclaims unfair competition, LayerZero Labs claims that their platform wasdeveloped independently. The resolution of this issue may have an impact on howbusinesses approach innovation and intellectual property protection. DEXs(Decentralized Exchanges) DEXs havegained popularity in the cryptocurrency sector due to their promise ofdecentralization and user control. This lawsuit has the potential to have animpact on the development and regulation of DEXs since it reveals potentiallegal problems involved with their operation. LegalClarity The case alsohighlights the importance of legal clarity in the crypto business.Cryptocurrency and blockchain technology regulations vary by country and can becomplicated. Legal squabbles like this one highlight the significance of havingclear legal frameworks in place to resolve challenges within the sector. MarketSentiment ADVERTISEMENT The outcome ofthe litigation may have an impact on market sentiment. Investors and tradersfrequently respond to legal conflicts involving big cryptocurrency companies. Aprotracted court battle or an unfavorable verdict could have an impact on theparties' valuations and reputations. High-profilelegal disputes may be subject to regulatory monitoring. Regulators may keep aclose eye on the case in order to assess potential dangers to consumers andinvestors. This may result in heightened scrutiny of bitcoin exchanges andinitiatives. CommunityEngagement Thecryptocurrency community is well-known for its active participation andadvocacy. The lawsuit may compel members of the community to debate issues suchas intellectual property rights, decentralization, and the role of exchanges inthe ecosystem. Setting aprecedent: Depending on the outcome, this lawsuit may establish legalprecedents that influence future bitcoin conflicts. These precedents have thepotential to influence the behavior of firms and persons participating incrypto-related activity. The Value ofResolution The resolutionof the dispute between FTX and LayerZero Labs is critical for the partiesinvolved as well as the broader crypto sector. Long legal fights may betime-consuming and disruptive, diverting attention and resources away frominnovation and growth. A resolutionthat explains intellectual property ownership and determines whether unfaircompetition occurred might provide guidance to industry participants. It canalso foster a better climate for innovation and competitiveness in thecryptocurrency market. Long story short: As per Cointelegraph , the key details of the case are as follows: TransactionHistory: Thelawsuit centers on transactions that took place between Alameda Ventures, theventure capital arm of Alameda Research (FTX's sister company), and LayerZeroLabs from January to May 2022. AlamedaVentures' Stake:Alameda Ventures paid over $70 million for a stake of approximately 4.92% inLayerZero. Additionally, it purchased $25 million worth of 100 million STGtokens at a public auction in March, intended to be distributed over six monthsstarting in March 2023. Loanto Alameda Research:In February, LayerZero provided a $45 million loan to Alameda Research, theparent company of Alameda Ventures, at an annual interest rate of 8%. ResolutionAttempts:Following FTX's crisis in November, LayerZero sought to negotiate the return ofits stake held by Alameda and an agreement to forgive the $45 million loan. Adeal related to 100 million STG tokens was also reached, but it was nevercompleted, with LayerZero failing to pay for the tokens, and Alameda Venturesnot transferring them. FTX'sAllegations: FTXclaims that LayerZero took advantage of Alameda Research's liquidity crisis andrapidly negotiated a "fire-sale" transaction with Caroline Ellison,Alameda Research's then-CEO. LegalAction: FTX'slawsuit demands the cancellation of the agreement and the recovery of fundswithdrawn just before FTX filed for bankruptcy. This includes approximately$21.37 million from LayerZero Labs, $13.07 million from its former COO AriLitan, and $6.65 million from a subsidiary, Skip & Goose. PreviousLegal Actions: FTXis pursuing the recovery of billions in funds from transactions made by varioussubsidiaries prior to the collapse of its conglomerate. It's important to note thatthis lawsuit is unrelated to LayerZero Power Systems, a company that holds theLayerZero trademark and is not involved in the crypto industry. Conclusion FTX's lawsuitagainst LayerZero Labs exemplifies the complexities and difficulties of legaldisputes in the cryptocurrency business. The case will be widely followed byindustry participants, regulators, investors, and the broader crypto communityas it progresses. The outcome ofthis litigation has the potential to change how intellectual property rightsare safeguarded, innovation is fostered, and legal conflicts in thecryptocurrency field are resolved. It also highlights the importance of preciselegal frameworks and regulatory monitoring in an industry characterized byrapid technological advances and market growth. Finally, theoutcome of this disagreement will have repercussions that go beyond FTX andLayerZero Labs, affecting the entire cryptocurrency ecosystem. As such, itserves as a reminder of the growing significance of legal and regulatoryconcerns in the area of blockchain and digital assets. Legaldisagreements can have far-reaching effects in the fast-paced world ofcryptocurrency and blockchain technology. The recent lawsuit brought by FTXagainst LayerZero Labs has piqued the interest of the crypto community. Whilelegal conflicts in the crypto realm are not uncommon, this case is gainingattention due to the high-profile nature of the people involved and thepotential repercussions for the broader industry . A BriefComparison of FTX and LayerZero Labs The caseinvolves FTX, a well-known cryptocurrency exchange, and LayerZero Labs, ablockchain development startup. LayerZero Labs, according to FTX, copied FTX'scode, trading techniques, and user interfaces for its decentralized exchange(DEX) called "ZTEx." FTX, created bySam Bankman-Fried and Gary Wang, has expanded fast in recent years and iswell-known for its cryptocurrency-related innovation. It provides a diverserange of trading instruments, including spot and derivatives markets, tokenizedequities, and options. LayerZero Labs,on the other hand, attracted notice for its efforts in developing a Layer 2scaling solution for Ethereum as well as the creation of ZTEx, a decentralizedexchange. The case stems from FTX's claim that LayerZero Labs illegallyduplicated its intellectual property, including proprietary code and tradingalgorithms, in the development of ZTEx. Keep Reading

Alameda Ventures Investments

21 Investments

Alameda Ventures has made 21 investments. Their latest investment was in Hypernative as part of their Seed VC on December 06, 2022.

CBI Logo

Alameda Ventures Investments Activity

investments chart

Date

Round

Company

Amount

New?

Co-Investors

Sources

12/6/2022

Seed VC

Hypernative

Yes

1

11/30/2022

Series G - III

Toss

$405M

Yes

17

10/26/2022

Seed VC

Kollider

$2.35M

Yes

2

6/8/2022

Series B

Subscribe to see more

$99M

Subscribe to see more

10

3/29/2022

Series A

Subscribe to see more

$99M

Subscribe to see more

10

Date

12/6/2022

11/30/2022

10/26/2022

6/8/2022

3/29/2022

Round

Seed VC

Series G - III

Seed VC

Series B

Series A

Company

Hypernative

Toss

Kollider

Subscribe to see more

Subscribe to see more

Amount

$405M

$2.35M

$99M

$99M

New?

Yes

Yes

Yes

Subscribe to see more

Subscribe to see more

Co-Investors

Sources

1

17

2

10

10

Loading...

CBI websites generally use certain cookies to enable better interactions with our sites and services. Use of these cookies, which may be stored on your device, permits us to improve and customize your experience. You can read more about your cookie choices at our privacy policy here. By continuing to use this site you are consenting to these choices.