TechFlow news — In response to FTX's lawsuit, Bryan Pellegrino, CEO and co-founder of LayerZero Labs, stated that FTX's allegations are entirely baseless.
He emphasized that LayerZero has actively attempted to resolve the equity-related issues, but FTX has consistently ignored their efforts. The lawsuit, he suggested, appears to be a tactic by FTX to prolong legal proceedings and generate additional legal fees.
Regarding FTX's claim that "LayerZero withdrew funds based on insider information," Pellegrino clarified that LayerZero had no knowledge of FTX's potential bankruptcy. He personally continued depositing funds into FTX up until a month before its collapse, including a $1 million deposit on November 7. The withdrawals were precautionary risk management measures; LayerZero adopted a cautious stance amid market rumors, similar to how it earlier withdrew $100 million from Silicon Valley Bank during its turmoil.
Pellegrino also criticized FTX’s legal team handling the bankruptcy, describing their performance as poor and demonstrating a lack of understanding of fundamental blockchain concepts such as private keys. He further pointed out their misconduct during the StarGate (STG) token swap event.
Previously, FTX creditor @sunil_trades posted on X, stating that according to court filings, FTX has filed clawback lawsuits against LayerZero Labs and others, accusing LayerZero of illegally withdrawing $21.37 million. Additionally, FTX is seeking to recover approximately $19.72 million from Ari Litan and his entity Skip & Goose.
