FTX estate sues LayerZero Labs to recover $86M transferred on eve of bankruptcy

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FTX estate sues LayerZero Labs to recover $86M transferred on eve of bankruptcy
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The FTX estate is seeking to overturn several deals and transfers made in the days before FTX's bankruptcy filing in another clawback attempt

The FTX estate is suing blockchain infrastructure company LayerZero Labs in an attempt to undo a $45M deal made in the midst of its collapse.

The lawsuit argues that at the time of the transfers, the FTX empire was already insolvent, so the deals constitute fraud under the bankruptcy code and should be reversed for the benefit of the bankruptcy estate. The lawsuit also seeks to claw back withdrawals from the FTX.com and FTX.US exchanges made by LayerZero and its former Chief Operating Officer Ari Litan in the 90 days before the exchange’s bankruptcy filing.

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