According to Bloomberg, FTX has filed a lawsuit against Binance and its founder CZ. FTX is demanding $1.8 billion in the lawsuit.
According to the report, FTX alleged that former Binance CEO Changpeng Zhao and other Binance executives received at least $1.76 billion worth of cryptocurrencies through a fraudulent transfer from FTX.
Binance, Changpeng Zhao, and other Binance executives received the funds as part of a stock buyback agreement with now-jailed FTX co-founder Bankman-Fried in July 2021. Bankman-Fried paid for the buyback under the stock buyback agreement using FTX’s FTX Token (FTT) and Binance’s token BNB.
At this point, the lawsuit concerns the buyback agreement Binance made with FTX co-founder Sam Bankman-Fried in July 2021.
*This is not investment advice.
