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News

by Emmanuel Musa

6 days ago



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FTX WANTS $1.8 BILLION FROM BINANCE AND CHANGPENG ZHAO

A new lawsuit by the FTX estate claims Binance and its former CEO were parties
to an allegedly fraudulent share repurchase transaction.





FTX IS GOING AFTER ITS FORMER INVESTORS

FTX wants its money back. According to court documents released by FTX estate on
Sunday, Binance, Changpeng Zhao (CZ), and other Binance executives received $1.8
billion as part of a share repurchase agreement with Bankman-Fried, the
now-incarcerated co-founder of FTX in July 2021.



At the time, the transaction was based on their combined ownership of 20% of
FTX’s international unit and 18.4% of its U.S.-based entity. This is the basis
for FTX’s lawsuit, as the estate filing claims FTX was balance-sheet insolvent
by early 2021, allegedly making the transaction fraudulent.

According to the filing, Bankman-Fried used a combination of FTX’s exchange
token FTT and Binance-branded coins BNB and BUSD, which were worth $1.76 billion
at the time, to pay for the stock repurchase.



CZ in particular is also being charged by FTX with publishing “false,
misleading, and fraudulent tweets,” which was “maliciously calculated to destroy
his rival.” The filing said CZ shared a tweet on November 6, 2022, which stated
that Binance planned to sell its FTT tokens which were valued at about $529
million at the time. This in turn caused withdrawals from FTX exchange to soar.

The case is one of several that FTX has brought in Delaware’s bankruptcy court
against its former affiliates, clients, and investors. According to court
filings, other defendants include political organizations like the Mark
Zuckerberg-founded FWD.US and digital asset exchange Crypto.com.

TAGS IN THIS STORY

Binance, ftx






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SECRETARY CONTEST

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PARAGUAYAN MINING SITE



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