FTX sues LayerZero to undo a $45M deal.

FTX sues LayerZero to undo a $45M deal.

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 FTX sues LayerZero to undo a $45M deal. 

FTX, a huge bankrupt exchange, in recent months sues different entities to get back the funds, which were spent by former administration. Recently, the exchange filed a lawsuit to try to recover $320M which were spent on acquisition of Digital Assets AG. 

The deal: 

The deal included Alameda, a trading branch of FTX, selling back to LayerZero its 5% stake, worth $150M at current valuation, in exchange for that the LayerZero cancelled $45M loan which was provided for Alameda previously. Under the bankruptcy code in American legislation this can possible be regarded as fraud, yet it should be proven in the court. New chairman of FTX claims that this was a case 

The bigger picture: 

CEO of LayerZero calls accusations "unsustainable" and points that they were made more than a year after, while the company was trying to address the issue of its assets in FTX earlier. This in general shows the anarchy which arises after the fall of huge market actors and reveals a need to more vivid rules to secure assets. Court sessions would be an interesting example of the legal ways for crises solving in the industry, and provide a template for other actors. 


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