The defunct Cryptocurrency exchange, FTX, files a lawsuit against Binance and its former CEO, Changpeng Zhao, for events in 2021 and 2022. This is a legal matter that was a matter of time before it happened. Now, the board of directors of the bankrupt platform is willing to recover part of its funds.
According to Bloomberg, the company seeks to recover about $1.8 billion that it sent to Binance in July 2021. This transaction occurred after a share repurchase agreement with Sam Bankman-Fried, the then CEO of FTX, who is now serving his sentence. The aforementioned transaction involved sales of approximately a 20% stake in FTX’s international unit and 18.4% of its US-based entity.
According to lawsuit documents cited by Bloomberg, FTX paid Binance via FTT tokens, BNB, and the BUSD stablecoin. By then, the payment amount was approximately $1.7 billion. The board emphasizes that FTX was surely already insolvent by early 2021, which is why the aforementioned transfer to Binance was fraudulent.
Basically, FTX’s lawsuit against Binance is seen by the community as a kind of revenge for the events of 2022. From FTX’s point of view it is a way to capitalize, given that lawsuits for fraudulent transfers not only affect Binance already CZ. Anthony Scaramucci, among others, was also sued for receiving fraudulent funds.
FTX sues former Binance CEO for malicious messages
On the other hand, the exchange’s directive includes another accusation against Binance, particularly against its then CEO, CZ. This is due to the businessman’s malicious messages in 2022, which caused the final collapse of FTX. On his account on
The latter caused not only massive sales of the FTT token, but also withdrawals of funds from an exchange that had no way to reimburse. In this way, CZ knew perfectly well the situation of FTX and, therefore, his publications had the malicious intention of harming his rival, the current FTX board assumes.
Thus, these “false, misleading and fraudulent” messages are grounds for lawsuit, since they were “maliciously calculated to destroy a rival.”
It is important to remember that before the crash, FTX was one of the most popular cryptocurrency exchanges in the world. In fact, it ranked second in trading volume behind Binance. Hence, the then irreverent signing of Changpeng Zhao did not hide its intentions to remove a direct rival from the game.
In any case, the bankruptcy of FTX cannot be attributed to Binance, but is due to the mismanagement of its directors. The collapse of that exchange was the cause of the harsh winter of 2022, when cryptocurrency prices plummeted. Furthermore, the side effects were terrible and still affect the industry greatly, as is the case with the hostility of the SEC.
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