FTX Lawsuit Seeks $1.9 Billion from Binance

FTX has filed a lawsuit against Binance and its former CEO Changpeng Zhao, seeking to recover up to $1.9 billion in what it claims were fraudulent transfers. The legal battle is centered around a 2021 deal where FTX repurchased shares from Binance, funded by Alameda Research, which was insolvent at the time. This transfer is alleged to have been made using customer deposits, thus constituting fraud under bankruptcy law. The lawsuit also accuses Zhao of exacerbating FTX's collapse through tweets that triggered a mass withdrawal of funds. Binance has dismissed the allegations as 'meritless' and intends to defend itself vigorously. The lawsuit is part of FTX's ongoing efforts to reclaim funds for its creditors following its bankruptcy in 2022.