FTX Sues Binance and CZ Zhao, Seeks $1.8B Over Fraud Claims

• FTX claims that Binance and CZ Zhao received $1.75 billion fraudulently in a 2021 buyback deal
• The lawsuit seeks to recover the funds allegedly transferred by Sam Bankman-Fried
• The complaint states that Binance executives received the sum in FTT, BNB, and BUSD tokens

In a stunning turn of events, bankrupt cryptocurrency exchange FTX has filed a lawsuit against fellow cryptocurrency exchange Binance and its former CEO, Changpeng CZ Zhao, over damages amounting to $1.8 billion.

According to the filing, in July 2021, Binance and its executives fraudulently took the sum of $1.75 billion from Sam Bankman-Fried.

FTX’s Legal Action for $1.8 Billion Recovery

FTX is suing Binance and its former CEO, Changpeng Zhao, for the recovery of almost $1.8 billion that it said was fraudulently transferred by Sam Bankman-Fried.

Fraudulent Transaction in July 2021

Apparently, in July 2021, Sam Bankman-Fried and Binance inked a fraudulent transaction in some sort of agreement for a $1.75-billion buyback.

Precisely, the complaint shows that the amount was received by Binance, CZ, and the rest of the leading executives of the exchange in FTT, BNB, and BUSD tokens. Bankman-Fried had transferred the $1.75 billion for the buying of FTX shares.

FTX’s Attempt to Recover Alleged Fraudulent Transfers

It was for this reason that FTX, to my knowledge, sued Binance and CZ Zhao as one means of attempting recovery of millions of dollars that this exchange allegedly fraudulently transferred.

One saga just keeps on getting more dramatic, with a new development powerfully underlining an increasing demand for more transparency and accountability in the virtual currency market.