FTX is suing Binance and its former CEO CZ for $1.76 billion over an alleged fraudulent transfer from 2021. The lawsuit claims that CZ’s tweets in 2022 intentionally triggered FTX’s collapse. The dispute centers on Binance’s 2019 acquisition of a 20% stake in FTX and subsequent 2021 buyback, which was funded by Alameda Research using FTX customer deposits, despite being insolvent.
Sam Bankman-Fried has been sentenced to 25 years in prison for fraud. The lawsuit seeks to recover funds for use in repaying creditors and former customers who lost funds in FTX’s collapse. The lawsuit’s outcome could have implications for how similar transactions between cryptocurrency exchanges are handled in the future.
