{"id":41143,"date":"2024-11-11T12:05:50","date_gmt":"2024-11-11T12:05:50","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ftx-files-lawsuit-against-binance-over-1-76-billion-shares-deal\/"},"modified":"2024-11-11T12:05:50","modified_gmt":"2024-11-11T12:05:50","slug":"ftx-files-lawsuit-against-binance-over-1-76-billion-shares-deal","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ftx-files-lawsuit-against-binance-over-1-76-billion-shares-deal\/","title":{"rendered":"FTX Files Lawsuit Against Binance Over $1.76 Billion Shares Deal"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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Binance Holdings and its former CEO Changpeng \u201cCZ\u201d Zhao are the targets of a lawsuit filed by FTX alleging a $1.76 billion fraudulent share buyback agreement. FTX\u2019s recent attempt to recoup assets after declaring bankruptcy is represented by this action.<\/p>\n

FTX claims that in July 2021, Binance and Zhao obtained money through a share repurchase from FTX\u2019s former CEO, Sam Bankman-Fried, according to a Bloomberg story published on November 11. Bankman-Fried repurchased interests using a mix of FTX\u2019s FTT tokens and Binance\u2019s BNB and BUSD coins, according to court records. Around 20% of FTX\u2019s worldwide operations and an 18.4% share in its U.S. branch were involved in the sale, which at the time was valued at $1.76 billion.<\/p>\n

Allegations of Fraud and Insolvency<\/strong><\/h2>\n

FTX\u2019s legal team argues that the share repurchase transaction was fraudulent, asserting that FTX and its affiliated firm, Alameda Research<\/a>, were already \u201cbalance-sheet insolvent\u201d<\/em> when the deal took place. The lawsuit claims that Bankman-Fried\u2019s payments to Binance were knowingly made under false pretenses, potentially harming FTX\u2019s creditors and stakeholders.<\/p>\n

FTX further alleges that Zhao\u2019s tweets in the days before FTX\u2019s collapse fueled public doubt about the company\u2019s stability. One significant tweet came in November 2022, when Zhao stated Binance\u2019s plans to sell $529 million worth of FTT tokens, FTX\u2019s native token. This message triggered mass withdrawals from FTX, ultimately leading to the platform\u2019s shutdown. The lawsuit describes Zhao\u2019s actions as \u201cmaliciously calculated to destroy his rival.\u201d<\/em><\/p>\n

Binance did not respond to Bloomberg\u2019s request for comment regarding the allegations.<\/p>\n

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In addition to the Binance case, FTX has filed over 20 lawsuits against former investors, affiliates, and clients. Among these cases is one against former White House communications director Anthony Scaramucci\u2019s SkyBridge Capital, as well as lawsuits targeting Crypto.com and political group FWD.US. FTX and Alameda Research, its sister company, have also pursued legal action against Waves founder Sasha Ivanov, seeking to reclaim $90 million in cryptocurrency.<\/p>\n

Currently, Sam Bankman-Fried is serving 25-year prison sentence<\/a> but is challenging the ruling. His legal team argues that the judge exhibited bias, presuming guilt from the outset. Meanwhile, Changpeng Zhao, who completed a four-month sentence in September, has resumed his public appearances at cryptocurrency events.<\/p>\n

This legal push underscores FTX\u2019s efforts to recover funds and stabilize finances for creditors amid its ongoing bankruptcy proceedings.<\/p>\n

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Source link <\/a>
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(Originally posted on : Crypto News – iGaming.org ) Binance Holdings and its former CEO Changpeng \u201cCZ\u201d Zhao are the targets of a lawsuit filed by FTX alleging a $1.76 billion fraudulent share buyback agreement. FTX\u2019s recent attempt to recoup assets after declaring bankruptcy is represented by this action. FTX claims that in July 2021, […]<\/p>\n","protected":false},"author":34,"featured_media":41144,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/41143"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=41143"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/41143\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/41144"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=41143"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=41143"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=41143"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}