{"id":2491,"date":"2024-11-12T05:03:12","date_gmt":"2024-11-12T05:03:12","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=2491"},"modified":"2024-11-12T05:03:12","modified_gmt":"2024-11-12T05:03:12","slug":"ftx-files-1-8-billion-lawsuit-against-binance-and-former-ceo-changpeng-zhao","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=2491","title":{"rendered":"FTX Files $1.8 Billion Lawsuit Against Binance And Former CEO Changpeng Zhao"},"content":{"rendered":"
\n

The estate of bankrupt crypto exchange FTX filed a lawsuit against Binance and its former CEO, Changpeng Zhao, for alleged fraudulent transfers and starting a campaign to \u201cdestroy\u201d its competitor. The $1.8 billion legal action follows another 23 lawsuits filed last Friday to claw back part of the ill-spent funds.<\/p>\n

Binance Hit With $1.8 Billion Lawsuit<\/h2>\n

On Sunday, FTX filed<\/a> a lawsuit in the US Bankruptcy Court for the District of Delaware, suing global crypto exchange Binance and its former CEO Changpeng Zhao and seeking to recover $1.76 billion in creditors\u2019 funds.<\/p>\n

According to the court document, the exchange\u2019s bankruptcy estate argues that FTX\u2019s stake repurchase deal, led by its co-founder and former CEO, Sam Bankman-Fried, using its sister company, Alameda Research, was fraudulent.<\/p>\n

Between 2019 and 2020, Binance acquired<\/a> a 20% stake in FTX International and an 18.4% stake in its US-based unit, becoming the exchange\u2019s second-largest shareholder. However, in July 2021, Bankman-Fried, also known as SBF, paid $1.76 billion to repurchase the stock with a mix of the bankrupt exchange\u2019s FTT token, Binance Coin (BNB), and Binance USD (BUSD).<\/p>\n

FTX\u2019s estate claims that the exchange and its sister company \u201cmay have been insolvent from inception and certainly were balance-sheet insolvent by early 2021,\u201d making the repurchase deal fraudulent.<\/p>\n

\"FTX\"<\/p>\n

Moreover, the filling adds that the now-incarcerated Caroline Ellison, the former CEO of Alameda Research, previously testified that the repurchase deal was done with customer deposits. Ellison, a key witness in SBF\u2019s prosecution, revealed that Bankman-Fried went through with the deal to conceal the company\u2019s insolvency.<\/p>\n

CZ And Binance\u2019s Alleged Campaign Against FTX<\/h2>\n

The lawsuit accused Binance\u2019s co-founder and former CEO, Changpeng Zhao<\/a>, of orchestrating a \u201ccampaign to destroy FTX.\u201d The document alleges that Zhao posted a series of \u201cfalse, misleading, and fraudulent tweets\u201d to turn customers against the now-bankrupt exchange.<\/p>\n

Additionally, the estate claims that CZ and Binance engaged in \u201cmaliciously calculated\u201d efforts, with \u201cmonths-long coordinated FUD\u201d to attack FTX in 2022.<\/p>\n

Per the document, Binance\u2019s former CEO\u2019s tweets on November 6, 2022, aggravated the exchange\u2019s withdrawal situation. Zhao announced that Binance would sell all its FTT tokens, worth $529 million at the time, following the \u201crecent revelations that came to light,\u201d causing a rise in withdrawals.<\/p>\n

\"FTX\"<\/p>\n

The lawsuit argues that Binance\u2019s public sale of its FTT tokens was not done in a way that \u201cwould minimize the market impact.\u201d Instead, it claims that Zhao announced its selling plans to \u201cmaximize the PR impact of it\u201d and \u201cincrease Binance\u2019s market share.\u201d<\/p>\n

However, a Binance spokesperson told Bloomberg that the claims are \u201cmeritless\u201d and the exchange will \u201cvigorously defend\u201d itself.<\/p>\n

As reported<\/a> by Bitcoinist, yesterday\u2019s legal action follows FTX\u2019s 23 lawsuits against different entities to recover the ill-spent funds by SBF ahead of the creditors\u2019 payout, expected to start in the last weeks of 2024.<\/p>\n

FTX estate\u2019s recent lawsuits include Singaporean exchange Crypto.com, Mark Zuckerberg-founded immigration and justice advocacy group FWD.US, and Anthony Scaramucci\u2019s hedge fund SkyBridge Capital.<\/p>\n

\"FTX,<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The estate of bankrupt crypto exchange FTX filed a lawsuit against Binance and its former CEO, Changpeng Zhao, for alleged fraudulent transfers and starting a campaign to \u201cdestroy\u201d its competitor. The $1.8 billion legal action follows another 23 lawsuits filed last Friday to claw back part of the ill-spent funds. Binance Hit With $1.8 Billion […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-2491","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/2491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2491"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/2491\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}