Updating part 2 of the floor #FTX here. Anyone who hasn't read it yet, please watch part 1 here.
https://www.binance.com/en/feed/post/1125333
Reclaim the $41M that LayerZero (Including the CEO, LayerZero and 1 subsidiary) was able to withdraw before FTX went bankrupt
LayerZero is of course dissatisfied, claiming that the bankruptcy unit FTX is trying to buy time to collect more legal fees.
The community also stood up to defend LayerZero because they believe that if the project leaves money on the floor, it has the right to withdraw, so why sue?
However, FTX is not suitable either, they are using the law to sue
According to the "Priority of Payment" rule from US bankruptcy law, the bankruptcy entity has the right to recover money from creditors within 90 days before filing for bankruptcy to distribute money from that creditor (In case This is LayerZero) to all other creditors (All customers stuck on FTX). This helps ensure fairness, avoiding the debtor only paying a few creditors, instead of paying everyone in full.
Summary of this case for interested AEs because it may affect the ZRO token launch schedule. We'll have to wait until the trial to find out what the outcome will be
