FTX Sues LayerZero For Illegal Withdrawal Of $21M Before Shutdown

FTX has filed a recovery lawsuit against LayerZero for allegedly withdrawing $21 million illegally before FTX was shut down. The exchange also seeks to recover approximately $13.07 million and $6.65 million from Ari Litan, the former chief operating officer of LayerZero Labs, and its Skip & Goose subsidiary. LayerZero is accused of using internal information to withdraw the funds before FTX was shut down and withdrawals were prohibited.

In addition to the lawsuit, FTX is scrutinizing payments made to high-profile celebrities and sports figures who endorsed the platform before its bankruptcy. Some of the celebrities on the list include Shaquille O’Neal, Naomi Osaka, and Stephen Curry. FTX aims to recover funds following the collapse of Sam Bankman-Fried’s crypto platform.

FTX had $3.4 billion worth of crypto in April and reportedly plans to liquidate its assets. The exchange aims to sell up to $200 million worth of crypto every week. Although there is no confirmation of the start date yet, many are reporting that it will be on September 13th.

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