FTX Sues Binance, Former CEO Changpeng Zhao, Seeks $1.8 Billion: Report

The once-giant cryptocurrency exchange that folded just over two years ago, FTX, is continuing its effort to recoup substantial funds from former investors.

In its latest action, the company founded by Sam Bankman-Fried has gone after Binance and its former CEO, Changpeng Zhao.

The Bloomberg report indicates that the lawsuit filed by FTX’s lawyers seeks to recover $1.8 billion, which it says was fraudulently transferred by its former CEO, SBF.

According to the filing, SBF transferred $1.76 billion at the time in FTT, BNB and BUSD to Binance, some of its executives and CZ in July 2021. Accordingly, they sold 20% of the FTX international unit and a just over 18% of the US arm.

The filing further alleges that FTX and Alameda Research “may have been insolvent from their inception and were certainly insolvent on the balance sheet as of early 2021,” making the transfer fraudulent.

Other allegations made by FTX’s current leadership include claiming that CZ made numerous “false, misleading and fraudulent tweets” that actually accelerated the collapse of the SBF-led exchange.

Recall that CZ said on November 6, 2022 that the company he ran plans to sell its entire portfolio of FTT tokens, worth about $530 million at the time. FTX withdrawals began immediately after the post and the exchange had collapsed within days.

Since then, the now-defunct company’s new management has launched numerous lawsuits against former partners and investors. Most recently, it settled a legal dispute against Bybit in which it will receive $228 million.

SPECIAL OFFER (Sponsored) Binance Free $600 (Exclusive to CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!