Orhan 
FTX, the cryptocurrency exchange that experienced a major collapse in recent years, has made headlines again with a new lawsuit. The exchange has filed a lawsuit against former Binance CEO Changpeng Zhao (CZ). FTX is seeking $1.8 billion from CZ in this legal action.
FTX, the former crypto exchange, is suing Binance and its former CEO Changpeng Zhao to recover approximately $1.8 billion that it claims was fraudulently transferred by Sam Bankman-Fried.
The lawsuit alleges that Binance, Zhao, and other Binance executives received these funds as part of a share buyback agreement made in July 2021 with FTX founder Bankman-Fried.
In this agreement, Bankman-Fried used FTX’s native token FTT, Binance’s BNB coin, and the Binance USD (BUSD) stablecoin to make a $1.76 billion payment to buy back shares in FTX’s international and U.S. operations.
The FTX bankruptcy estate claims that FTX and its sister trading platform Alameda Research were already insolvent in early 2021. This claim forms the basis of the lawsuit. If the allegations are proven true, the buyback deal could be considered fraudulent, and the funds transferred to Binance should be returned to FTX’s creditors.
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