FTX sues Binance and CZ for nearly $1.8b over alleged SBF transfer
The post FTX sues Binance and CZ for nearly $1.8b over alleged SBF transfer appeared on BitcoinEthereumNews.com.
FTX is suing Binance Holdings and its former Chief Executive Officer Changpeng ‘CZ’ Zhao over an alleged fraudulent shares repurchase by Sam Bankman-Fried, valued at $1.76 billion at the time. According to a Bloomberg report published on Nov. 11, CZ and other Binance executives received the funds as part of a shares repurchase deal with then-CEO of FTX Sam Bankman-Fried in July 2021. Based on the legal filing, Bankman-Fried sold around 20% of FTX’s international unit stakes and 18.4% from its U.S-based branch. Bankman-Fried paid for the repurchase with a mix of FTX’s token FTT and Binance-issued coins BSB(BSB) and BUSD(BUSD). The transaction was worth around $1.76 billion at the time. However, the FTX team are claiming that the transfer made by Bankman-Fried to Binance was a fraud. This is because when the repurchase deal with Binance occurred, FTX and its sister firm Alameda Research were already “balance-sheet insolvent.” Therefore, they believe the transfer was fraudulently made. Not only that, FTX is also coming after CZ for posting what they claim to be a number of “false, misleading, and fraudulent tweets” in the days leading up to the crypto exchange’s collapse. The estate claimed that CZ’s posts were made to purposely bring down his competitor, calling his content “maliciously calculated to destroy his rival.” One such case occurred in November 2022, when CZ posted a tweet that claimed Binance had intended to sell $529 million worth of FTT tokens. His tweet started an avalanche of withdrawals from the exchange by spooked traders. Bloomberg sent Binance a request for comment, however the Binance spokesperson did not send through a response to the allegations. Former Binance CEO CZ was released at the end of September after completing a four-month prison sentence. He has been out-and-about at cryptocurrency events and giving public interviews. Meanwhile,…
Filed under: News - @ November 11, 2024 11:25 am