FTX sues Binance and former CEO Zhao Changpeng for US$1.8 billion
The lawsuit relates to Binance’s sale of its stake in FTX, the rival exchange founded by the now-imprisoned Sam Bankman-Fried
According to the lawsuit, FTX’s Alameda Research division directly funded the share repurchase using tokens which had a then fair market value of US$1.76 billion. Alameda, the lawsuit alleges, was insolvent at the time of buying the shares and could not therefore afford to fund the transaction and it should not have been allowed to proceed.
“By this lawsuit, the Plaintiffs seek to recover, for the benefit of FTX’s creditors, at least US$1.76 billion that was fraudulently transferred to Binance and its executives at the FTX creditors’ expense, as well as compensatory and punitive damages to be determined at trial,” the administrators for the FTX estate said in a filing made on Sunday in the US state of Delaware.
A Binance representative said: “The claims are meritless, and we will vigorously defend ourselves.”
