This article has been republished with permission from Binance News.
According to a report by Odaily, FTX has filed a lawsuit against LayerZero Labs, its former Chief Operating Officer Ari Litan, and other related parties to recover more than $41 million in funds. The lawsuit alleges that LayerZero utilized inside information to illegally withdraw $21.37 million from FTX just before the company ceased operations and banned withdrawals.
FTX also seeks to recover approximately $13.07 million and $6.65 million from Ari Litan and LayerZero’s subsidiary Skip & Goose, respectively.
In November last year, LayerZero had reached an agreement with FTX, FTX Ventures, and Alameda Research for a complete equity acquisition and purchased locked STG tokens from Alameda’s community auction. LayerZero has stated that it currently holds roughly $107 million in direct cash balance and $27 million in on-chain funds (approximately 90% stablecoins), amounting to a total of $134 million.