LayerZero

According to reports, the struggling company FTX has <a href="https://restructuring.ra.kroll.com/FTX/Home-DocketInfo">sued</a> LayerZero Labs, the creator of the cross-chain protocol, in an effort to recoup $21 million in assets that the company is believed to have fraudulently transferred before FTX collapsed in November.&nbsp; 
<h2 id="span-style-font-weight-400-ftx-claims-layerzero-took-advantage-of-alameda-span">FTX Claims LayerZero Took Advantage of Alameda</h2> 
In its argument, FTX claims that LayerZero took advantage of Alameda Ventures amid an economic downturn. The filing states: “LayerZero was well aware that Alameda Research was facing a liquidity crisis and, within about 24 hours, negotiated a fire-sale transaction with Caroline Ellison, Alameda Research’s then-CEO.” 
<h3 id="span-style-font-weight-400-a-series-of-transactions-span">A Series of Transactions&nbsp;</h3> 
Notably, the case can be traced to a series of transactions that took place between Alameda Ventures and LayerZero from January to May 2022. 
In accordance with the court filings submitted on September 9, Alameda Ventures paid over $70 million in two separate payments for a 4.92% share in LayerZero. Alameda Ventures also spent an additional $25 million in <a href="https://twitter.com/SBF_FTX/status/1509223825778561027?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1509223825778561027%7Ctwgr%5E5b132b837caf6ce12bf6e5962939ad8ec6e1bdcb%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fftx-sues-layer-zero-labs-seeks-recover-millions-bankruptcy">March</a> to purchase 100 million STG tokens at an open sale.&nbsp; 
<h2 id="span-style-font-weight-400-layerzero-lent-alameda-45m-in-feb-span">LayerZero Lent Alameda $45M in Feb</h2> 
LayerZero lent Alameda Research $45 million in February via its promissory note with an annual interest rate of 8%. Early in November, as the FTX problems grew, LayerZero looked for a deal to get its Alameda-owned part back. Another agreement was concluded involving 100 million STG tokens, which LayerZero on November 9 acquired back at a discount for $10 million. However, this transaction was never finalized. Both LayerZero and Alameda Ventures failed to pay for and transfer the tokens. 
<h3 id="span-style-font-weight-400-ftx-seeks-to-reboot-operations-span">FTX Seeks to Reboot Operations</h3> 
Back in August, FTX’s bankruptcy administrator revealed the plans to perhaps start afresh, which may provide another shot to thrive. The plan calls for <a href="https://thecoinrise.com/ftx-proposes-rebooted-offshore-exchange-for-claimants/">creating a “rebooted” offshore exchange</a> that would allow individuals to own equity securities, tokens, or other types of interests in the new company. <a href="https://thecoinrise.com/ftx-ceo-in-talks-with-multiple-parties-to-launch-ftx-2-0/">John J. Ray III, the new CEO of FTX,</a> also previously asserted that the company has started the process of reaching out to potential partners to revive the exchange. 
The post <a rel="nofollow" href="https://thecoinrise.com/ftx-sues-layerzero-labs-seeks-to-recover-21m/">FTX Sues LayerZero Labs, Seeks to Recover $21M</a> appeared first on <a rel="nofollow" href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

FTX Sues LayerZero Labs, Seeks to Recover $21M

Table of Contents

TheCoinrise Media

Other articles published on Sep 11, 2023

How Web3 improves data storage: GhostDrive joins Cointelegraph Accelerator

FASB's Digital Asset Standards and Bankman-Fried's Appeal

What is $VET crypto and How to use it to Gain Profit?(2023 UPDATE)

The Idea of Paying Wages in Crypto Gains Traction

BSV Price Forecast 2023: Can Bitcoin SV Cross $50 Once Again?

Solana (SOL) Price Plummets 6%: FTX Bankruptcy Concerns

Join our free newsletter for daily crypto updates!