FTX, the bankrupt cryptocurrency exchange, has filed a lawsuit against Binance, its former CEO Changpeng Zhao, and other executives. The lawsuit filed in the bankruptcy court of Delaware seeks to claw back nearly $1.8 billion in funds that FTX alleges were fraudulently transferred to Binance.
FTX claims that the funds were transferred as part of a fraudulent share repurchase deal in July 2021, when the exchange was already insolvent.
According to a court document released by the FTX estate on Sunday, they sold around 20% of their shares in the company’s foreign division and 18.4% of its US-based business in that transaction.
Additionally, FTX accuses Zhao of posting misleading tweets that contributed to the exchange’s downfall.
In the lawsuit, FTX alleges that Binance and its executives received the funds through a fraudulent transaction. The exchange further accuses Zhao of posting a series of “false, misleading, and fraudulent tweets” that exacerbated the crisis and ultimately led to FTX’s collapse.
Also Read: CZ’s Grand Return: Binance Billionaire Begins Life Post Jail
