LayerZero Labs CEO Hits Back at FTX Lawsuit
Bryan Pellegrino, CEO of LayerZero Labs, responded to FTX’s recent lawsuit by dismissing the claims as unsubstantiated. Pellegrino stated that LayerZero Labs has been attempting to address the issue of share ownership with FTX’s liquidators for almost a year, but has been ignored. He believes that FTX’s purpose in filing the suit is to prolong the process and accumulate more legal fees.
The lawsuit filed by FTX seeks to reverse several deals made between the two companies before FTX’s collapse, including a 5% stake sale from Alameda Research to LayerZero and the forgiveness of a $45 million loan. FTX claims that the deals were fraudulent because the exchange was already insolvent at the time.
Questionable STG Token Sales and Withdrawals
The lawsuit also raises questions about the re-sale of LayerZero’s STG tokens and withdrawals from FTX made in the 90 days before the exchange filed for bankruptcy. FTX alleges that there were close ties between the two firms and that LayerZero staff and their families were hosted by FTX in the Bahamas for several months.
Pellegrino refutes these claims, stating that he personally made deposits into FTX leading up to the bankruptcy and that the withdrawals were primarily used for business purposes, not based on insider information about FTX’s insolvency.
This lawsuit is part of a series of legal actions taken by FTX to recover funds it believes were misused by former executives.
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