Bankrupt FTX Exchange Sues LayerZero Labs Over Fund Withdrawals
The bankrupt cryptocurrency exchange FTX is taking legal action against LayerZero Labs in an attempt to recover funds that were withdrawn just before FTX’s collapse. FTX is seeking to reverse a $45 million deal and reclaim $40 million in withdrawals made by LayerZero over a three-month period leading up to FTX’s bankruptcy. The lawsuit claims that LayerZero took advantage of FTX’s financial crisis to carry out fraudulent transfers. Additionally, FTX alleges that the transactions with LayerZero were influenced by personal friendships between FTX affiliate Alameda Research and LayerZero’s founders and employees. The lawsuit also aims to recover funds withdrawn from FTX.com and FTX.US exchanges by LayerZero and former COO Ari Litan in the 90 days prior to FTX’s bankruptcy filing.
FTX Estate Continues Legal Efforts to Recover Funds
The FTX estate has been actively pursuing legal action against various entities in its efforts to recover funds for its creditors. The estate recently filed a document that reveals substantial contributions made to organizations such as MLB, the Miami Heat, and the Golden State Warriors. The document also mentions payments to entities like Coachella, Gamestop, and Kevin O’Leary, as well as payments to sports figures including Shaquille O’Neal, Naomi Osaka, David Ortiz, and Trevor Lawrence. These legal proceedings highlight the ongoing efforts of the FTX estate to recover funds and address the aftermath of the collapse of the FTX exchange.
Hot Take: FTX Exchange Takes Legal Action to Recover Funds
Bankrupt cryptocurrency exchange FTX has filed a lawsuit against LayerZero Labs to recover funds that were withdrawn before its collapse. FTX aims to reverse a $45 million deal and reclaim $40 million in withdrawals made by LayerZero during the three months leading up to FTX’s bankruptcy. The lawsuit alleges that LayerZero took advantage of FTX’s desperate financial situation to carry out fraudulent transfers. FTX also claims that personal friendships between FTX affiliate Alameda Research and LayerZero’s founders and employees influenced the transactions. These legal actions demonstrate FTX’s determination to recover funds for its creditors and address the consequences of its collapse.
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