 When the future Doge Lorenzo Tiepolo destroyed the Genoese fleet in 1257, Genoa allied with Michael VIII Palaeologus, who in 1261 captured Constantinople, putting an end to the Latin Empire and awarding Genoans the privileges formerly held by Venetians.Venice replied by building a large fleet which again defeated the Genoese in Settepozzi in 1263.In 1268 a five-year truce was signed with Byzantine Empire which restored to the Venetians many of their former priviliegies, establishing an uneasy balance between the two maritime republics, allowing them to compete freely in the Levant.