FTX’s New Leadership Seeks Funds Through Lawsuit Against Former Associate
FTX’s new CEO is aggressively pursuing ways to secure funds for the struggling exchange. In addition to seeking refunds on celebrity endorsements, FTX has filed a lawsuit against its former associate, LayerZero, accusing them of taking advantage of FTX’s downfall using insider information.
The exchange is using the Bankruptcy Code to take legal action and recover property transfers. FTX is seeking over $41 million from LayerZero, claiming that they demanded immediate repayment of a $45 million loan while knowing about FTX’s liquidity crisis.
Although FTX and LayerZero had agreed to resolve the loan through equity payments, FTX alleges that LayerZero engaged in questionable practices until facing legal threats from debtors. FTX claims that LayerZero and its employees created accounts on the exchange and attempted to withdraw funds before FTX’s collapse.
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