FTX Sues Binance, Former CEO CZ for $1.8B
Summary
FTX has filed a lawsuit against Binance and former CEO Changpeng Zhao over a fraudulent share repurchase by FTX's ex-CEO, Sam Bankman-Fried. In July 2021, Bankman-Fried used FTX's token, FTT, and Binance coins BSB and BUSD to buy Binance's stake in FTX, valued at $1.76 billion. Alameda Research, Bankman-Fried's trading firm, funded the purchase despite being insolvent. The transaction is alleged to be fraudulent as FTX was already insolvent and FTT tokens were worthless. FTX's collapse was accelerated by Binance selling its FTT holdings, impacting the token's value. FTX claims Zhao's tweets were misleading and harmed the company.
