FTX Sues Binance and CEO Zhao for $1.8 Billion Over Alleged Fraud by Sam Bankman-Fried

Nov 11, 2024, 08:54 AM

FTX has filed a lawsuit against Binance and its former CEO Changpeng Zhao, seeking to recover almost $1.8 billion that it alleges was fraudulently transferred by Sam Bankman-Fried, FTX's co-founder currently in prison. The funds were allegedly transferred in a 2021 deal in which Binance and Zhao sold their shares in FTX back to the company. FTX claims that Sam Bankman-Fried used FTX (FTT) and Binance (BNB) tokens to fund the repurchase, and that the transfers were fraudulent. The lawsuit aims to claw back these funds to benefit FTX's creditors in the ongoing bankruptcy proceedings.