FTX Token

Bankrupt cryptocurrency exchange FTX has filed a lawsuit against Binance Holdings Ltd. and its former CEO, Changpeng Zhao. The case, filed in Delaware’s bankruptcy court, is trying to recover about $1.8 billion that FTX claims its co-founder, Sam Bankman-Fried, moved improperly. According to FTX, the funds were transferred as part of a 2021 clawback agreement with Binance and Zhao. FTX believes this deal was established on shaky financial ground.Binance’s Stake DealAccording to the latest <a href="https://www.bloomberg.com/news/articles/2024-11-11/ftx-sues-binance-former-ceo-zhao-seeking-1-8-billion-clawback?utm_campaign&#61;socialflow-organic&amp;utm_content&#61;crypto&amp;utm_medium&#61;social&amp;utm_source&#61;twitter&amp;embedded-checkout&#61;true" rel="noopener noreferrer nofollow">report</a>, Binance executives and Zhao agreed to sell stakes in FTX international and US-based entities in July 2021. The transaction gave Binance around 20% of FTX’s international shares and 18.4% of the US unit in return. FTX’s estate alleges that Bankman-Fried financed this clawback using a combination of FTX’s exchange token (FTT) and Binance-branded tokens (BNB and BUSD), valued at $1.76 billion.The <a href="https://restructuring.ra.kroll.com/FTX/Home-DownloadPDF?id1&#61;MzIyNDg1MA&#61;&#61;&amp;id2&#61;-1" rel="noopener noreferrer nofollow">filing</a> suggests that FTX and Alameda Research may have been unable to pay their debts from the very start and were officially in debt by early 2021. This indicates that FTX’s financial system was vulnerable even before the deal. The estate also accused <a href="https://cryptotale.org/eigen-gains-traction-after-binance-and-kucoin-listings/" rel="noopener noreferrer nofollow">Binance</a> and Zhao of fraud in the clawback arrangement to challenge the transfer and regain the money<a href="https://cryptotale.org/ftx-sues-binance-zhao-for-1-8b-in-alleged-fraud-report/" rel="noopener noreferrer nofollow">.</a><a href="https://cryptotale.org/ftx-sues-binance-zhao-for-1-8b-in-alleged-fraud-report/" rel="noopener noreferrer nofollow">Read more on Cryptotale.</a>Visit the links for more information <a href="https://cryptotale.org/" rel="noopener noreferrer nofollow">Website</a> | <a href="https://twitter.com/cryptotalemedia" rel="noopener noreferrer nofollow">Twitter </a>| <a href="https://t.me/cryptotale_news" rel="noopener noreferrer nofollow">Telegram </a>| <a href="https://www.instagram.com/cryptotalenews/" rel="noopener noreferrer nofollow">Instagram </a>|

FTX Sues Binance, Zhao for $1.8B in Alleged Fraud: Report

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