FTX has filed a lawsuit against Binance and its former CEO Changpeng Zhao, seeking a $1.8 billion clawback in a case involving alleged fraudulent fund transfers.
Background of the Share Repurchase Deal
FTX's lawsuit claims that Binance, CZ, and other executives received $1.76 billion in FTX tokens (FTT) and Binance coins (BNB and BUSD) as part of a July 2021 share repurchase transaction. Binance reportedly sold back its stakes in FTX's international and US entities. The funds used for this transaction were allegedly misappropriated from FTX customers and investors. FTX and its sister company, Alameda Research, may have been insolvent before the deal, making it a "fraudulent transfer."
Allegations Against CZ and Binance's Role
The FTX estate alleges that CZ's actions were part of a broader scheme to destabilize FTX. A key focus of the lawsuit is CZ's November 6, 2022, tweet announcing Binance's intent to sell its FTT holdings, worth approximately $529 million. This announcement led to mass withdrawals and a liquidity crisis at FTX, resulting in its eventual collapse. FTX claims that the tweet was a calculated move to harm FTX, describing it as "false, misleading, and fraudulent."
Lawsuit Against Waves Founder
In another legal action, FTX's sister company Alameda Research has filed a separate lawsuit against Waves founder Aleksandr Ivanov, seeking to recover at least $90 million. The lawsuit involves assets placed on Vires.Finance, later converted into Waves' stablecoin USDN. Alameda claims Ivanov artificially inflated Waves' value and siphoned funds from Vires.
These lawsuits are part of FTX's broader legal strategy to recover funds from various parties involved in the crypto industry's bankruptcy.
