FTX Sues Binance for $1.8 Billion Over Alleged Fraudulent Transfer

The lawsuit claims a 2021 share repurchase deal was unlawfully funded by an insolvent Alameda Research, part of the FTX group.

FTX's estate has filed a lawsuit in Delaware Bankruptcy Court against Binance and its former CEO, Changpeng Zhao, seeking to recover $1.76 billion allegedly transferred fraudulently.
The lawsuit centers on a July 2021 transaction where FTX repurchased Binance's stake using tokens from FTX and Binance, despite FTX's insolvency at the time.
FTX claims Binance's Zhao made misleading tweets in 2022 that triggered a withdrawal rush, contributing to FTX's collapse.
Binance has denied the allegations, labeling the claims as meritless and stating intentions to vigorously defend against the lawsuit.
This lawsuit is part of FTX's broader effort to reclaim funds for creditors, amidst ongoing bankruptcy proceedings following FTX's 2022 collapse.