FTX Estate Files Lawsuit Against LayerZero Labs in Bankruptcy Case
FTX Estate, the bankrupt company’s estate, has filed a lawsuit against LayerZero Labs in an effort to recover $86 million that was transferred shortly before FTX filed for bankruptcy. The lawsuit alleges that the transactions between former Alameda Research CEO Caroline Ellison and LayerZero Labs were fraudulent and should be voided to benefit the bankruptcy estate. The lawsuit also addresses LayerZero’s attempt to reclaim 100 million Stargate (STG) tokens from Alameda, valued at $10 million. Additionally, the FTX estate is seeking the recovery of withdrawals made by LayerZero and its former COO Ari Litan from FTX.com and FTX.US exchanges, totaling $21 million and $19.6 million, respectively. LayerZero Labs has not yet responded to the lawsuit.
Hot Take: FTX Estate Seeks Recovery of Funds in Bankruptcy Case
In a legal battle to recoup funds for its creditors, the FTX estate has taken legal action against LayerZero Labs, alleging fraudulent transactions and seeking the return of $86 million. The bankruptcy estate is also addressing LayerZero’s attempt to reclaim Stargate tokens worth $10 million. With the FTX estate seeking the recovery of significant withdrawals made by LayerZero and its former COO, the lawsuit aims to invalidate these transactions to benefit the bankruptcy estate. While LayerZero Labs has not responded to the lawsuit, this legal action is part of the FTX estate’s efforts to retrieve funds from various parties involved in the bankruptcy case.
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