The lawsuit is part of broader efforts by FTX’s estate to recover assets following its 2022 bankruptcy and CEO Sam Bankman-Fried’s subsequent 25-year prison sentence
Bankrupt crypto firm FTX is suing Binance and its ex-CEO, Changpeng Zhao, seeking to recover $1.76 billion, which it claims was “fraudulently” transferred in 2021 as part of a share repurchase deal.
The suit alleges that then-FTX CEO Sam Bankman-Fried facilitated the transaction, buying back Binance’s 20% stake in his company using assets from sister firm Alameda Research, despite FTX and Alameda being insolvent at the time.
FTX’s bankruptcy estate argues the deal harmed creditors and seeks to recover the funds plus damages. Binance denies the claims and calls them “meritless.”
The lawsuit is part of broader efforts by FTX’s estate to recover assets following its 2022 bankruptcy and Bankman-Fried’s subsequent 25-year prison sentence in what an attorney called “one of the biggest financial frauds in American history.”
Binance has denied all the allegations.