FTX Sues Binance for $1.8 Billion Over Alleged Fraudulent Deal
The legal battle between two of the biggest names in cryptocurrency has intensified as the estate of bankrupt exchange FTX has filed a lawsuit against Binance and its former CEO, Changpeng Zhao (CZ). The lawsuit seeks to recover nearly $1.8 billion, accusing Binance of engaging in a fraudulent 2021 share repurchase deal.
According to FTX’s legal team, Binance’s actions, including public statements by Zhao, were aimed at undermining FTX’s stability, ultimately leading to its downfall in late 2022. The lawsuit alleges that Binance manipulated the market and misled investors, contributing to FTX’s liquidity crisis and subsequent collapse.
In response, Binance has strongly denied the allegations, calling the claims “meritless” and vowing to fight them in court. This lawsuit adds to the ongoing regulatory scrutiny faced by Binance and the broader crypto industry as governments worldwide tighten oversight.
The case marks another chapter in the fallout of FTX’s dramatic collapse, which sent shockwaves through the cryptocurrency market. As legal proceedings unfold, the lawsuit could have significant implications for both companies and the broader crypto landscape.
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