Breaking: Binance And Changpeng Zhao Faces FTX Lawsuit To Return $1.8B Fund

As a seasoned analyst with over two decades of experience in the financial industry, I’ve witnessed my fair share of twists and turns in the world of crypto. This latest development between FTX and Binance is a rollercoaster ride that even the most ardent thrill-seekers might find hard to stomach.


FTX, in a recent court action, is seeking to get back $1.8 billion from Binance and its ex-CEO Changpeng Zhao. They claim that this money was wrongfully moved by FTX’s co-founder, Sam Bankman-Fried, over to Binance. This legal move has generated buzz in the wider crypto sector, particularly since it happens as FTX is trying to retrieve funds after facing a collapse about two years ago.

FTX Seeks $1.8B Clawback From Binance And Changpeng Zhao

As per a recent Bloomberg report, FTX claims that Binance and its CEO Changpeng Zhao received $1.8 billion as part of a share buyback agreement in July 2021. In this deal, it’s said that Sam Bankman-Fried (SBF) utilized both FTX’s native token (FTT) and Binance-related tokens (BNB and BUSD) to acquire roughly 20% of the international version of FTX and about 18.4% of its U.S.-based counterpart.

The report indicates that the combined worth of these assets was approximately $1.76 billion at the specified time. In their submission, FTX argues that it, along with its related company Alameda Research, might have been facing financial instability since inception and could have already been insolvent by early 2021.

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2024-11-11 12:35