Principality of Theodoro
Meanwhile, Stephen's brother-in-law, Alexander, seized the Principality of Theodoro in the Crimea at the head of a Moldavian army. Stephen also decided to expel his former protégé, Basarab Laiotă, from Wallachia, because Basarab had supported the Ottomans during their invasion of Moldavia. He made an alliance with Matthias Corvinus in July, persuading him to release Basarab's rival, Vlad Țepeș, who had been imprisoned in Hungary in 1462. Stephen and Vlad made an agreement to put an end to the conflicts between Moldavia and Wallachia, but Corvinus did not support them to invade Wallachia. The Ottomans occupied the Principality of Theodoro and the Genoese colonies in the Crimea before the end of 1475. Stephen ordered the execution of the Ottoman prisoners in Moldavia to take vengeance for the massacre of Alexander of Theodoro and his Moldavian retainers. Thereafter the Venetians, who had waged war against the Ottomans since 1463, regarded Stephen as their principal ally. With their support, Stephen's envoys tried to persuade the Holy See to finance Stephen's war directly, instead of sending the funds to Matthias Corvinus. The Signoria of Venice emphasized, "No one should fail to understand the extent to which Stephen could influence the evolution of events, one way or another", referring to his pre-eminent role in the anti-Ottoman alliance.