FTX Sues Binance, CZ for $1.8 Billion Over 2021 Deal, Alleging Fraudulent Transfers

Nov 11, 2024, 10:55 AM

FTX, the collapsed cryptocurrency exchange, has filed a lawsuit against Binance and its former CEO Changpeng Zhao (CZ), seeking to recover almost $1.8 billion related to a July 2021 share buyback deal. FTX alleges that its former CEO Sam Bankman-Fried, who is currently in prison, fraudulently transferred funds to Binance and CZ, who obtained the funds by selling their equity stake in FTX. The lawsuit claims that Binance and Zhao acted with reckless disregard for FTX's customers and contributed to the exchange's collapse. This legal action is part of FTX's broader effort to claw back money for creditors following its bankruptcy.