FTX Sues Binance for $1.8 Billion

FTX has initiated a lawsuit against Binance and its former CEO, Changpeng Zhao, seeking to recover nearly $1.8 billion, which it claims was fraudulently transferred by its co-founder Sam Bankman-Fried during a share repurchase deal in July 2021. The lawsuit alleges that these funds were part of a transaction that destabilized FTX's finances, contributing to its eventual collapse. FTX's current leadership accuses Zhao of making misleading statements that accelerated the exchange's downfall. In total, FTX has filed over 20 legal actions against various individuals and companies, aiming to generate funds for creditor repayments. Additionally, Alameda Research, FTX's subsidiary, is pursuing a $90 million lawsuit against the founder of the altcoin Waves for market manipulation. The ongoing legal battles are likely to increase tensions within the cryptocurrency market as they unfold.