Binance And Changpeng Zhao Faces FTX Lawsuit To Return $1.8B Fund

FTX has recently filed a lawsuit against Binance and its former CEO Changpeng Zhao, demanding a return of $1.8 billion. According to FTX, the fund was fraudulently transferred by its co-founder, Sam Bankman-Fried, to Binance. This legal development has sparked speculations in the broader crypto market, especially as it comes as FTX works to recover funds following its collapse two years ago.

FTX Seeks $1.8B Clawback From Binance And Changpeng Zhao

According to a recent Bloomberg report, FTX alleges that Binance and Changpeng Zhao (CZ) received the $1.8 billion as part of a share repurchase agreement in July 2021. In this transaction, Sam Bankman-Fried or SBF reportedly used a combination of FTX’s own token (FTT) and Binance-branded tokens (BNB and BUSD) to repurchase approximately 20% of the international unit of FTX and 18.4% of the US-based entity.

The report notes that at the time, the total value of these assets was around $1.76 billion. In its filing, FTX contends that it and its sister firm, Alameda Research, may have been financially unstable from the beginning and were likely already insolvent by early 2021.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam’s expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news.
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