FTX has initiated legal action against Binance and its former CEO, Changpeng Zhao, seeking to recover approximately $1.8 billion. The company alleges that these funds were illegally transferred.
Lawsuit Against Binance
The lawsuit details a share buyback transaction between Binance and FTX co-founder Sam Bankman-Fried, signed in July 2021. In this deal, Binance and Zhao sold stakes totaling about 20% in FTX’s international arm and 18.4% in its U.S.-based entity. FTX claims that the $1.76 billion deal was funded using FTX tokens, FTT, BNB, and BUSD.
Alameda Research's Lawsuit Against Waves Founder
Alameda Research has filed a similar lawsuit against the founder of Waves, accusing him of misappropriating $90 million via the Vires Finance platform.
Accusations Against Changpeng Zhao
FTX also accuses Changpeng Zhao of releasing misleading information that contributed to the exchange’s collapse. They cite a tweet by Zhao on November 6, 2022, in which he announced Binance’s plans to sell its FTT tokens valued at approximately $529 million.
Lawsuits against major players in the cryptocurrency market draw public attention and highlight the challenges the industry faces in its evolution and regulation.
