#FTXrepayment

In November 2024, collapsed cryptocurrency exchange FTX filed a lawsuit against Binance and its former CEO, Changpeng Zhao, seeking the return of $1.8 billion. FTX claims that the funds were transferred as part of a “fraudulent” share buyback transaction in July 2021, when Binance sold its shares in FTX back for $1.76 billion worth of cryptocurrencies. According to the lawsuit, the transaction was illegal because FTX and its sister company Alameda Research were already insolvent at the time, and the funds came from illegally used customer deposits. Additionally, FTX accuses Zhao of posting misleading tweets in November 2022 that aimed to destroy FTX, which led to mass withdrawals and the exchange’s eventual collapse. Binance denies the allegations, calling them baseless. The lawsuit is part of a broader effort by FTX to recover funds for creditors following its spectacular collapse two years ago.