The defunct cryptocurrency exchange FTX continues its efforts to recover substantial funds from former investors with a lawsuit against Binance and its founder Changpeng Zhao for $1.8 billion.
Details of the Lawsuit Against Binance
Founded by Sam Bankman-Fried, FTX has filed a lawsuit against Binance and Changpeng Zhao, seeking a recovery of $1.8 billion. Bloomberg reports indicate that FTX claims these funds were fraudulently transferred by its former CEO in FTT, BNB, and BUSD back in July 2021. Consequently, Binance sold 20% of FTX’s international unit and over 18% of its US arm.
Allegations Against Changpeng Zhao
The lawsuit filing also alleges that FTX and Alameda Research may have been insolvent from inception and certainly were as early as 2021, making such transfers fraudulent. FTX's current leadership accuses Changpeng Zhao of making numerous 'false, misleading, and fraudulent tweets' that accelerated the collapse of the exchange led by Sam Bankman-Fried.
Previous Lawsuits and Settlements
Since its collapse, FTX's new leadership has initiated numerous lawsuits against former partners and investors. Most recently, they settled a legal dispute with Bybit, receiving $228 million.
The ongoing legal battles underscore the complex financial and legal issues that remain after the collapse of FTX and the new team's efforts to recover assets.
