FTX Trading Ltd. is suing blockchain company LayerZero Labs Ltd. to reverse an allegedly improper loan forgiveness agreement made between the companies in the days before FTX filed Chapter 11.
The dispute centers on a $45 million loan that LayerZero made to FTX’s sister hedge fund, Alameda Research. LayerZero took advantage of Alameda’s weak financial position when on Nov. 7 last year it asked for immediate repayment of the loan, FTX and Alameda said in a court filing.
Alameda transferred to LayerZero a 5% equity stake it held in LayerZero in exchange for forgiveness of the loan. That stake is ...
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