Billion

<p>FTX is in a disastrous financial situation, lacking liquidity and desperately seeking solutions. In an effort to shore up its finances, the company is exploring old assets of Sam Bankman-Fried, while Binance CEO Changpeng “CZ” Zhao is in turn under fire from accusations. According to a recent complaint, FTX accuses Binance of unfair maneuvers in an attempt at destruction that would have precipitated its bankruptcy.</p>
<h2 id="h-ftx-denonce-un-accord-frauduleux-avec-binance">FTX denounces a fraudulent agreement with Binance</h2>
<p>In July 2021, <strong>a large-scale financial agreement between FTX and <a href="https://www.cointribune.com/binance-avis-negatif-2024-entre-fiabilite-et-securite/" target="_blank" rel="noopener noreferrer nofollow">Binance</a></strong> was allegedly orchestrated under false pretenses, according to the new complaint filed by the entity managing FTX’s bankruptcy. <a href="https://cointelegraph.com/news/tx-estate-sues-binance-cz-1-8-billion" target="_blank" rel="noopener noreferrer nofollow">This contract</a>, representing <strong>a colossal sum of $1.76 billion</strong>, was allegedly paid through a mix of FTX tokens (FTT), as well as BNB and BUSD, the cryptocurrencies controlled by Binance.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div> 
<div class="tradingview-widget-container tradingview--mini-chart">
 <div class="tradingview-widget-container__widget"></div>
 <div class="tradingview--mini-chart--dark">
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:FTTUSDT","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"dark"}</script>
 </div>
 <div class="tradingview--mini-chart--light">
  <script type="text/javascript" src="https://s3.tradingview.com/external-embedding/embed-widget-mini-symbol-overview.js" async>{"symbol":"BINANCE:FTTUSDT","width":350,"height":220,"isTransparent":false,"autosize":false,"dateRange":"12M","trendLineColor":"rgba(253,64,19,1)","underLineColor":"rgba(253,64,19,0.6)","underLineBottomColor":"rgba(253,64,19,0)","locale":"en","largeChartUrl":false,"colorTheme":"light"}</script>
 </div>
 <div class="tradingview-widget-copyright"><a href="https://fr.tradingview.com/symbols/FTTUSDT/?exchange=BINANCE" rel="noopener noreferrer nofollow" target="_blank"><span class="text-primary-color">FTTUSDT chart</span></a> by TradingView
 </div>
</div> 
<p>The case takes a complex turn as FTX claims that <strong>this agreement was made when FTX and Alameda Research were already insolvent</strong>. Among the elements cited in the complaint:</p>
<ul>
 <li><strong>A transfer of $1.76 billion deemed “fraudulent”;</strong></li>
 <li><strong>A sale of 20% of FTX International;</strong></li>
 <li><strong>A buyback of shares in FTX US valued at 18.4%.</strong></li>
</ul>
<p>FTX claims that this transaction would have allowed Binance to <strong>exploit FTX’s assets to increase its own market share</strong> in the crypto world.</p>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://coinbase-consumer.sjv.io/c/2801338/552039/9251" target="_blank" rel="noopener noreferrer nofollow">Your 1st cryptos with Coinbase</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
</div>
<h2 id="h-cz-de-binance-accuse-de-manoeuvres-contre-ftx">CZ of Binance accused of maneuvers against FTX</h2>
<p>The tensions between Changpeng Zhao, aka “CZ”, and Sam Bankman-Fried seem to have reached a peak before FTX’s collapse. According to the complaint, CZ allegedly orchestrated <strong>a “<em>fear campaign</em>” against FTX</strong> to undermine the company’s credibility with investors.</p>
<div class="wp-block-image">
 <figure class="aligncenter size-large"><img decoding="async" src="https://s3.cointelegraph.com/uploads/2024-11/01931ad1-b7d2-7ca9-a593-1134e5c3beca" alt="">
  <figcaption class="wp-element-caption">
   X post from former Binance CEO Changpeng Zhao on the liquidation of FTT in November 2022. Source: Kroll
  </figcaption>
 </figure>
</div>
<p>This strategy, labeled as “FUD” (Fear, Uncertainty, Doubt), supposedly culminated in November 2022 with the massive liquidation of FTT by Binance, leading to a spectacular drop in the price of this altcoin.</p>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://www.bitmart.com/register-referral/en?r=VanRSD" target="_blank" rel="noopener noreferrer nofollow">Your 1st cryptos with BitMart</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
</div>
<p>FTX’s lawyers also accuse CZ of making <strong>misleading statements</strong> aimed at manipulating public opinion regarding the fate of the FTX acquisition. The promise to buy FTX was, according to them, just a smokescreen to prevent the struggling company from seeking other financing, thereby exacerbating the crisis.</p>
<p>“<em>By the time Zhao tweeted, Binance had already sold a massive amount of FTT</em>“, states the complaint.</p>
<p>In conclusion, FTX is under pressure to honor its commitments to its clients, who are struggling to recover <a href="https://www.cointribune.com/en/crypto-why-wont-ftx-clients-be-reimbursed-100/" target="_blank" rel="noopener noreferrer nofollow">their funds at 100%</a>. This situation may explain the active search for alternative financing.</p>

Crypto: FTX Accuses Binance Of Sabotage And Demands $1.8 Billion

Table of Contents

Cointribune EN

Other articles published on Nov 12, 2024

Bitcoin pushes past $90K amid meteoric 24-hour rally

Is It Too Late To Buy STRUMP? Super Trump Price Surges 74% And This Might Be The Next Crypto To E...

Weekly Article Recap: 10/28-11/01

Bitcoin Adds $20K in a Week, But Dogecoin Performs Even Better

Is Bitcoin Set to Soar Even Higher?

Altcoin Surge Lifts Uniswap 24% and FXGuys to New ATH After Election Results

Join our free newsletter for daily crypto updates!