FTX, a bankrupt crypto exchange, has filed a $1.8 billion lawsuit against Binance and its former CEO, accusing them of fraudulent share buyback. FTX claims the share buyback, which occurred in 2021, was not possible due to a lack of funds from both FTX and its sister company, Alameda Research. Binance has denied the accusations and vowed to defend itself vigorously.
FTX’s legal team is also seeking to recover funds from other entities in the cryptocurrency space. This lawsuit could have wider implications for the industry, as it highlights growing regulatory and financial challenges faced by crypto platforms and may prompt further regulatory measures.
