FTX Sues Binance and CZ for $1.8 Billion Over Alleged Fraudulent Share Buyback Using Customer Funds

Nov 11, 2024, 09:57 AM

FTX, the bankrupt cryptocurrency exchange, has filed a lawsuit against Binance and its former CEO Changpeng Zhao (CZ), seeking to recover nearly $1.8 billion from a 2021 share buyback deal. The lawsuit alleges that Sam Bankman-Fried, FTX's co-founder currently in prison, fraudulently transferred the funds by diverting customer deposits to finance the repurchase of Binance's stake in FTX. FTX claims that Binance and Zhao showed reckless disregard for FTX's customers by aiding and abetting the misappropriation of assets.