BUSD

The once-giant cryptocurrency exchange that went under just over two years ago, FTX, continues with its effort to claw back substantial funds from former investors.
In its latest action, the Sam Bankman-Fried-founder company has gone after Binance and its former CEO, Changpeng Zhao.
Bloomberg’s <a href="https://www.bnnbloomberg.ca/business/company-news/2024/11/11/ftx-sues-binance-former-ceo-zhao-seeking-18-billion-clawback/" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">report</a> indicates that the lawsuit filed by FTX’s lawyers seeks to retrieve $1.8 billion, which it claims 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 back in July 2021. Consequently, they sold 20% of FTX’s international unit and just over 18% of the US arm.
The filing further alleges that FTX and Alameda Research “may have been insolvent from inception and certainly were balance-sheet insolvent by early 2021,” which makes 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.
<a href="https://cryptopotato.com/the-fall-of-sam-bankman-frieds-crypto-empire-a-timeline-of-ftxs-collapse/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Recall</a> that CZ said on November 6, 2022 that the company he ran plans to sell its entire FTT token portfolio, worth around $530 million at the time. FTX withdrawals began immediately after the post and the exchange had collapsed within a few days.
Since then, the new leadership at the now-defunct company has initiated numerous lawsuits against former partners and investors. Most recently, it <a href="https://cryptopotato.com/ftx-agrees-to-228-million-settlement-in-bybit-legal-dispute/" data-wpel-link="internal" rel="noopener noreferrer nofollow">settled</a> a legal dispute against Bybit in which it will receive $228 million.
The post <a href="https://cryptopotato.com/ftx-sues-binance-and-former-ceo-changpeng-zhao-seeks-1-8-billion-report/" rel="noopener noreferrer nofollow">FTX Sues Binance and Former CEO Changpeng Zhao, Seeks $1.8 Billion: Report</a> appeared first on <a href="https://cryptopotato.com/" rel="noopener noreferrer nofollow">CryptoPotato</a>.

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

CryptoPotato_News

Other articles published on Nov 11, 2024

Political Betting Contracts, Cross-Chain Communication Advances, and Crypto Payments in Detroit

Crypto: Ethereum In Danger? An Ethereum Whale Liquidates 1.2 Billion In ETH

Cryptocurrency Markets Surge with New Highs

TRON DAO Joins Chainlink SCALE, Adopts Chainlink Data Feeds for DeFi Ecosystem

XYZVerse presale hits $500k; Market awaits XRP Trump support and Solana growth

Bitcoin Surges Past $81,000 Amid Trump’s Victory and Pro-Crypto Political Shift

Join our free newsletter for daily crypto updates!