FTX Sues Binance and CZ for $1.8 Billion in Fraud Lawsuit
FTX sues Binance and CZ, seeking $1.8B over alleged fraudulent transfers
FTX’s new leadership is going after Binance and its former CEO Changpeng Zhao (CZ) in a lawsuit seeking $1.8 billion.
According to FTX, Sam Bankman-Fried (SBF) fraudulently transferred $1.76 billion in FTT, BNB, and BUSD to Binance, CZ, and other executives in 2021. The lawsuit also alleges that FTX and Alameda Research were insolvent even before these transfers.
Adding fuel to the fire, FTX claims CZ’s November 2022 tweet about selling Binance’s FTT holdings accelerated its collapse, causing a withdrawal frenzy. FTX’s collapse happened within days, marking one of the crypto world’s largest failures.
As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4
— CZ 🔶 BNB (@cz_binance) November 6, 2022
This lawsuit follows FTX’s recent settlement with Bybit, recovering $228M, as the company continues to claw back funds post-bankruptcy.
