Lawsuit against Binance: FTX reclaims 1.8 billion US dollars
As part of the insolvency process, FTX filed a lawsuit against Binance and is demanding a sum in the billions. The competitor obtained this through fraud.
(Image: Shutterstock.com; Sergei Elagin)
Crypto exchange FTX, which is currently in bankruptcy proceedings, is seeking to recover around 1.8 billion US dollars from its competitor by filing a lawsuit against Binance and its former CEO Changpeng Zhao. This was reported by the industry magazine CNBC, citing the lawsuit filed in the US state of Delaware. It concerns a transaction in which Binance sold considerable shares in FTX back to the company, for which the then head of FTX, Sam Bankman-Fried, paid cryptocurrency worth 1.76 billion US dollars. However, because the FTX-Alameda Research conglomerate was already insolvent at the time, the deal was fraudulent.
FTX had officially filed for bankruptcy in the fall of 2022, and the crypto exchange's assets had previously been frozen. As a result, a comprehensive embezzlement of customer funds was uncovered and Bankman-Fried, the former head of the company, has since been sentenced to 25 years in prison. Other members of the management team have also been sentenced to several years in prison. However, the victims' money is not lost, as fortunate circumstances in the bankruptcy proceedings have made extensive repayments possible. The lawsuit against Binance is now intended to recover further assets.
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The conduct of Binance has now also been dealt with in court, with Changpeng Zhao admitting that he violated US money laundering law and circumvented sanctions laws. He spent four months in prison for this. FTX is now also accusing him personally of having contributed to this with a series of "false, misleading and fraudulent tweets" shortly before the collapse of FTX, CNBC further quotes. Those responsible at FTX are now making similar accusations against other celebrities and competitors such as the crypto exchange Crypto.com.
(mho)
