The bankruptcy estate of FTX continues to press legal action against major cryptocurrency entities, aiming to reclaim billions lost during the platform’s decline.
The estate filed a suit against Binance
According to the lawsuit filed on November 10, Binance and its top executives allegedly benefited from funds transferred in what FTX describes as a fraudulent transaction. This transaction originated in a repurchase agreement in July 2021 with FTX co-founder Sam Bankman-Fried, who currently serves a 25-year sentence for his role in the company’s collapse.
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The deal saw Bankman-Fried buy back shares of FTX International (20%) and FTX US or West Realm Shires Services (18.4%). Bankman-Fried reportedly financed this stock repurchase using a mix of FTX Token
The complaint also accuses Zhao and Binance of taking deliberate actions to destabilize FTX. The lawsuit outlines a supposed campaign of “fear, uncertainty, and doubt” (FUD) that targeted FTX in the months following its collapse. This campaign included Binance’s public statements and large-scale liquidation of FTT tokens.
Additionally, a Bankman-Fried-associated investor testified before the US Senate, stating that Zhao and Bankman-Fried were “at war with each other”, with Zhao allegedly plotting to put FTX out of business. The estate claims that Zhao’s statements and actions were not merely coincidental or competitive maneuvers but rather part of a strategic plan to damage FTX while benefiting Binance.
The FTX estate’s legal campaign against Binance reflects its effort to recover funds it claims were wrongfully drained from FTX, alleging that Binance’s maneuvers were intended to damage its competitor and advance its market position.
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