FTX has filed a $1.8 billion lawsuit against Binance and its former CEO Changpeng Zhao. The lawsuit aims to recover funds allegedly fraudulently transferred.
Allegations Against Binance and Changpeng Zhao
The lawsuit alleges that Zhao's actions were part of a broader scheme to destabilize FTX. It highlights a tweet by Zhao on November 6, 2022, announcing the intention to sell $529 million worth of FTT tokens, causing mass withdrawals and a liquidity crisis at FTX. FTX claims this announcement was malicious and misleading.
The Share Repurchase Deal
FTX's lawsuit claims that Binance executives received $1.76 billion in FTX tokens and Binance-branded cryptocurrencies as part of a July 2021 share buyback. FTX alleges these funds may have been misappropriated from customers and investors.
Lawsuits Against Other Entities
FTX's estate has filed lawsuits against other figures, including former White House communications director Anthony Scaramucci and companies like Crypto.com and FWD.us. Alameda Research has filed a separate lawsuit against Waves founder Aleksandr Ivanov, seeking $90 million.
The lawsuit is part of a broader strategy by FTX to recover funds linked to its bankruptcy. The outcome of these legal battles could impact many stakeholders in the crypto industry.
