FTX filed a lawsuit against Zhao over the exchange's collapse in 2022 ⚖️
FTX demands $1.76 billion from the founder of Binance, claiming he unjustly profited after exiting the exchange's capital in 2021 when he sold his stake for crypto assets, including FTT tokens.
In response, Zhao claims that the lawsuit should not be considered in the U.S. at all, as he is not a citizen of the country and resides in the UAE, and the agreement itself was cross-border. His lawyers emphasize that he has no connection to the machinations of Sam Bankman-Fried, which led to FTX's bankruptcy.
The irony of the situation is that Binance once helped FTX grow, and now both companies meet in court. It is worth recalling that FTX was once valued at $32 billion, but after it was revealed that billions of dollars of customer funds were illegally transferred to Alameda Research, Bankman-Fried's empire collapsed literally within days.
Now, the legal battles surrounding the remnants of FTX continue, and the lawsuit against Zhao is just one of many attempts to recover funds for the exchange's creditors.
