1. BITBILIHome
  2. Article

FTX sues LayerZero Labs in a bid to recover $21 million amid bankruptcy

• 46 views

TL;DR Breakdown

  • FTX, a bankrupt cryptocurrency exchange, has sued LayerZero Labs to recover $21 million, alleging illicit withdrawals made just before FTX’s bankruptcy. The lawsuit also involves transactions with Alameda Ventures and focuses on a deal allowing Alameda Research to sell back a 5% stake in LayerZero.
  • Bryan Pellegrino, CEO of LayerZero Labs, refutes the lawsuit’s claims, stating they are unsubstantiated. He suggests that FTX is prolonging the legal process to accumulate more legal fees. LayerZero had been trying to address share ownership issues with FTX’s liquidators for nearly a year.
  • The lawsuit is part of a series of legal actions by FTX to recover lost funds. It follows a previous lawsuit by FTX to recover more than $320 million spent on acquiring Digital Assets AG. Both FTX and LayerZero are preparing for a protracted legal battle.

Description

Bankrupt cryptocurrency exchange FTX has filed a lawsuit against LayerZero Labs, a cross-chain protocol company, seeking to recover $21 million. The lawsuit alleges that LayerZero Labs illegally withdrew these funds just before FTX’s bankruptcy declaration in November. The case stems from transactions between Alameda Ventures, the venture capital arm of FTX’s sister company Alameda Research, … Read more

Bankrupt cryptocurrency exchange FTX has filed a lawsuit against LayerZero Labs, a cross-chain protocol company, seeking to recover $21 million. The lawsuit alleges that LayerZero Labs illegally withdrew these funds just before FTX’s bankruptcy declaration in November. The case stems from transactions between Alameda Ventures, the venture capital arm of FTX’s sister company Alameda Research, and LayerZero Labs that took place from January to May 2022.

LayerZero CEO refutes claims

Bryan Pellegrino, CEO of LayerZero Labs, has countered the lawsuit in a post on X (formally Twitter), stating that it is filled with unsubstantiated claims. Pellegrino also claimed that LayerZero Labs has been trying to address the issue of share ownership with FTX’s liquidators for nearly a year but has been ignored. He believes the lawsuit aims to prolong the legal process to accumulate more legal fees.

The lawsuit focuses on a deal that allowed Alameda Research to sell back a 5% stake in LayerZero, valued at $150 million, in exchange for LayerZero forgiving a $45 million loan. The lawsuit also highlights an incomplete transaction related to 100 million STG tokens, which LayerZero agreed to buy back at a discounted rate of $10 million but never completed. FTX alleges that LayerZero exploited Alameda Ventures during a liquidity crisis, negotiating a fire-sale transaction within 24 hours.

In his statement on X, Pellegrino also disputed the claim of preferential information around the withdrawals. He pointed out that this claim can be easily proven false. He mentioned that he was personally depositing millions in the month leading up to bankruptcy, including $1 million as late as November 7th.

FTX is also seeking to recover $13.07 million from Ari Litan, LayerZero’s former COO, and $6.65 million from a subsidiary, Skip & Goose. The lawsuit claims that LayerZero staff, their families, and even their dogs were hosted by FTX in the Bahamas for several months, indicating close ties between the two firms.

This lawsuit is part of a series of legal actions initiated by FTX in recent months to recover funds lost in various transactions made by its subsidiaries before its collapse. The exchange previously filed a lawsuit to recover more than $320 million spent on the acquisition of Digital Assets AG, a Swiss startup.

The legal battle between FTX and LayerZero Labs is set to take another dimension. Both parties are gearing up for a protracted legal fight, with FTX aiming to recover $21 million amid its bankruptcy proceedings and LayerZero Labs defending against what it claims are baseless allegations.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:FTX sues LayerZero Labs in a bid to recover $21 million amid bankruptcy

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年9月11日 22:05
Next 2023年9月11日 23:19

Related articles

  • A look at the BRICS expansion -Is it a threat to US dominance or sheer optimism?

    TL;DR Breakdown Recent reports indicate a focused BRICS shift from economic to geopolitical agenda. Market analysts point to internal disagreements between India and China, India’s relationship with the West, and vision ambiguity as a problem for the Bloc. Iran, Saudi Arabia, Egypt, Argentina, the United Arab Emirates, and Ethiopia will join the current five members in January 2024. There remains the question of how BRICS will achieve de-dollarization considering the nations’ heavy reliance on the USD. Description The BRICS (Brazil, Russia, India, China, and South Africa) economic bloc is set to expand with the admission of six new countries: Argentina, Ethiopia, Iran, Saudi Arabia, Egypt, and the United Arab Emirates. This expansion aims to enhance the economic heft and global influence of the BRICS bloc, countering the influence of the US and … Read more The BRICS (Brazil, Russia, India, China, and South Africa) economic bloc is set to expand with the admission of six new countries: Argentina, Ethiopia, Iran, Saudi Arabia, Egypt, and the United Arab Emirates. This expansion aims to enhance the economic heft and global influence of…

    Article 2023年8月26日

  • Federal Reserve’s reaction to U.S. inflation data

    TL;DR Breakdown The U.S. consumer price index (CPI) may rise by 0.2% for the second month in July. Yearly forecast for the Labor Department’s gauge shows a 4.8% increase. Overall CPI, which includes food and energy, is predicted to have an annual rise of 3.3%. Description As the sun rises on a new economic horizon, the Federal Reserve stands at a precarious intersection of expectations and reality. The looming U.S. inflation data has been casting shadows of doubt on the nation’s financial stability, but recent insights hint at a silver lining that could change the narrative. Though optimism has always been … Read more As the sun rises on a new economic horizon, the Federal Reserve stands at a precarious intersection of expectations and reality. The looming U.S. inflation data has been casting shadows of doubt on the nation’s financial stability, but recent insights hint at a silver lining that could change the narrative. Though optimism has always been a fleeting guest in our financial halls, there’s no denying the data has tongues wagging. Let’s dissect. Unpacking the core For…

    Article 2023年8月7日

  • Card games evolve with ‘Sealed Mode’ in Gods Unchained

    TL;DR Breakdown Gods Unchained introduces “Sealed Mode,” a novel gameplay format inspired by traditional card games, offering players random card sets for competitive play. In a groundbreaking move, Immutable’s NFT-based system grants true ownership of digital cards, bridging the gap between physical and digital card gaming. Description In a groundbreaking move, Immutable’s popular Web3 game, Gods Unchained, has unveiled a new gameplay format that promises to revolutionize the digital card game arena. This innovative format, known as “Sealed Mode,” is designed to level the playing field for players, allowing even those without extensive or costly card collections to compete on equal footing. … Read more In a groundbreaking move, Immutable’s popular Web3 game, Gods Unchained, has unveiled a new gameplay format that promises to revolutionize the digital card game arena. This innovative format, known as “Sealed Mode,” is designed to level the playing field for players, allowing even those without extensive or costly card collections to compete on equal footing. The announcement, made on September 13th via a blog post, has sent ripples through the gaming community, drawing parallels with…

    Article 2023年9月14日

  • EU and US join forces for AI standards interim solution

    TL;DR Breakdown The European Union (EU) and the United States are joining forces to address the need for minimum AI standards as new comprehensive AI legislation is being developed. The EU’s forthcoming AI Act could be the world’s first comprehensive AI legislation, but it may take one to two years to be fully implemented. The fourth ministerial-level meeting of the Trade and Technology Council (TTC) will discuss generative AI algorithms and the need for regulatory oversight. In an unprecedented move towards global collaboration in the realm of artificial intelligence (AI), the European Union (EU) and the United States are jointly addressing the pressing need for an interim solution to AI standards. The call for an expeditious response comes as new legislation governing the use of AI is on the horizon but has yet to be formalized and enacted. Establishing AI standards: A global imperative Margrethe Vestager, the EU’s tech czar and Vice-President of the European Commission, stressed on the urgency to establish minimum standards to bridge the gap until the new laws take effect. The forthcoming AI Act from the…

    Article 2023年5月25日

  • India’s presidency note reveals game-changing crypto recommendations

    TL;DR Breakdown The document outlines India’s recommendations and seeks to influence the framing of international crypto rules in the upcoming synthesis paper jointly produced by the International Monetary Fund (IMF) and the Financial Stability Board (FSB). The note’s key action points include urging the inclusion of the Financial Stability Board’s (FSB) recommendations and those of other standard-setting bodies in the synthesis paper. Description India, currently holding the presidency of the Group of Twenty (G20), has taken a proactive step in shaping global cryptocurrency regulations by releasing its presidency note on crypto. This official document outlines India’s recommendations and seeks to influence the framing of international crypto rules in the upcoming synthesis paper jointly produced by the International Monetary … Read more India, currently holding the presidency of the Group of Twenty (G20), has taken a proactive step in shaping global cryptocurrency regulations by releasing its presidency note on crypto. This official document outlines India’s recommendations and seeks to influence the framing of international crypto rules in the upcoming synthesis paper jointly produced by the International Monetary Fund (IMF) and the…

    Article 2023年8月3日
TOP