FTX Files Lawsuit Against LayerZero Labs
FTX has filed a lawsuit against the developer of an omnichain protocol, LayerZero Labs, demanding the return of $86 million.
The lawsuit is in relation to a November 7, 2022 transaction between ex-Alameda Research CEO Caroline Ellison and LayerZero Labs in which the market maker agreed to sell back its 5% stake in the infrastructure project valued at $150 million at current valuation in exchange for the forgiveness of a $45 million loan.
The lawsuit claims that at the time of the transaction, the FTX group was already insolvent, thus violating the Bankruptcy Code and requiring the property to be included in the bankruptcy estate.
The lawsuit also relates to the sale of 100 million SG tokens by Alameda Research to LayerZero for $10 million, which the firm had previously purchased for $25 million and attempted to move the assets to its wallet, though abandoned the attempt due to the threat of legal action.
