FTXโs New Leadership Seeks Funds Through Lawsuit Against Former Associate
FTXโs new CEO is aggressively pursuing ways to secure funds for the struggling exchange. Alongย with seeking refunds on celebrity endorsements, FTX has filed a lawsuit against its former associate, LayerZero, accusing them of taking advantage of FTXโs 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 FTXโs liquidity crisis.
Despiteย theย factย that 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 states that LayerZero and its employees created accounts on the exchange and aimedย to withdraw funds before FTXโs collapse.
Hot Take: FTXโs pursuit of funds through legal means shows their determination to recover from their downfall and address the demands of regulators, debtors, and users.
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