Bankrupt cryptocurrency exchange FTX is suing several altcoin projects and crypto companies for allegedly withdrawing funds from its platform before it was shut down.
FTX claims $20 million back as part of bailout
In a hot development, FTX has filed a lawsuit against LayerZero alleging that $21 million was illegally withdrawn before the platform shut down. The exchange aims to buy back millions from the former COO and subsidiary.
The exchange also requests approximately $13.07 million and $6.65 million from Ari Litan, former chief operating officer of LayerZero Labs and Ari Litan, a subsidiary of Skip & Goose. He accuses LayerZero of using internal information to withdraw funds before bankruptcy and withdrawals are prohibited. Details came from Sunil, the biggest representative of FTX receivables on social media:
FTX files clawback (90-day pref.) lawsuit against
Layer Zero: $21m (Aug-Nov)
Ari Litan: $13m (8th/9th Nov)
Skip & Goose (Litan owned): $6.5m (Aug-Nov)Used insider knowledge to exploit the situation pic.twitter.com/NYQnZgvWyb
— Sunil (FTX Creditor Champion) (@sunil_trades) September 9, 2023
We reported that on November 11, 2022, LayerZero published a document from FTX/FTX Ventures/Alameda Research stating that it has repurchased 100% of the equity, currency rights and all other deals. The total value of the assets held by the Foundation is $134 million.
The bankrupt stock market went after all its partners
In addition to the lawsuit, FTX is also examining payments made to high-profile celebrities and sports figures who supported the platform before it went bankrupt. 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 cryptocurrencies in April. According to reports, the exchange plans to liquidate its reserves. The exchange aims to sell $200 million worth of crypto every week. Although there is no confirmation on the start date yet, many people are reporting that it will be on September 13.
Watch out for September 13: FTX may drain altcoin reserves
As Cryptokoin.com reported, the US court is about to give the green light to the FTX bankruptcy team for altcoin sales. According to reports, its exchange currently holds $3.4 billion worth of cryptocurrencies. September 13 may be the date that altcoin liquidation begins, where these coins face massive sales. Coins and their weights are as follows:
- Solana (SOL): $685 million (locked)
- FTX Token (FTT): $529 million
- Bitcoin (BTC): $268 million
- Ethereum (ETH): $90 million
- Aptos (APT): $67 million
- Dogecoin (DOGE): $42 million
- Polygon (MATIC): $39 million
- BitTorrent (BIT): $35 million
- Toncoin (TON): $31 million
- XRP (XRP): $29 million
https://twitter.com/TheDeFinvestor/status/1700461501977354386
It should be noted that former FTX executives were released with a fine in exchange for confession.
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