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FTX sues crypto exchange Binance and its former CEO Zhao for $1.8 billion
The estate of the collapsed crypto exchange FTX is suing Binance and its former CEO Changpeng Zhao, seeking at least $1.76 billion over a “fraudulent” share deal.
The lawsuit, filed in Delaware, concerns a 2021 transaction where Binance and Zhao sold a 20% stake in FTX and an 18.4% stake in its U.S. entity, West Realm Shires, back to the company.
FTX claims the repurchase was funded by its insolvent Alameda Research division and involved Binance’s exchange tokens and stablecoins.
Binance denies the allegations, calling them meritless, CNBC has reported.
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