🚨FTX sues Binance and Changpeng Zhao for $1.8 billion!
Although the former cryptocurrency giant FTX has declared bankruptcy, the related collection actions are still ongoing! This time, they have set their sights on Binance and its former CEO Changpeng Zhao, directly demanding compensation as high as $1.8 billion!
According to Bloomberg, FTX's legal team is working hard to recover this huge amount, claiming that the money was fraudulently transferred by FTX's former CEO Sam Bankman-Fried (SBF).
The documents state that SBF transferred $1.76 billion worth of FTT, BNB, and BUSD to Binance and some executives in July 2021, after which they sold more than 20% of FTX's international division and over 18% of the U.S. entity's shares.
Even more shocking, FTX alleges that, according to documents submitted by their bankruptcy estate management committee, FTX and its sister company Alameda Research may have faced bankruptcy from the very beginning, or at least were definitely in a state of balance sheet bankruptcy by early 2021. Therefore, they believe that the $1.76 billion transaction was actually conducted on an inaccurate basis, constituting fraudulent activity.
In addition, FTX's new management team has made severe accusations against Changpeng Zhao (CZ), claiming that he posted multiple “false, misleading, and fraudulent” tweets that accelerated FTX's collapse. Looking back, on November 6 of last year, CZ announced plans to sell approximately $530 million worth of FTT tokens, which triggered a massive withdrawal surge from FTX and led to the exchange's collapse within just a few days.
Since then, FTX's new management has taken legal action against some former partners and investors, filing multiple related lawsuits. Recently, they also reached a settlement agreement with Bybit, expected to yield $228 million in compensation.
In response to Bloomberg's report about FTX's $1.8 billion recovery lawsuit, Binance firmly denied these allegations, stating: “The relevant allegations are baseless, and we will take proactive measures to defend ourselves.”
In summary, regardless of the outcome, this lawsuit is undoubtedly worth industry attention. What does everyone think? Do you believe FTX's lawsuit will receive legal support? See you in the comments!
