FTX Sues Binance for $1.76B Over “Fraudulent” Deal

Hey FinTech Fanatic!

The FTX estate is now on a relentless mission to recover what it claims as losses from none other than Binance and its former CEO, Changpeng Zhao. According to FTX’s latest court filing in Delaware, it seeks a staggering $1.76 billion, alleging a “fraudulent” deal orchestrated by Zhao and others during a 2021 exit from FTX.

FTX claims that its Alameda Research arm, already insolvent at the time, funneled both company and Binance assets into repurchasing a 20% share in FTX and an 18.4% stake in its U.S. branch, West Realm Shires. The filing labels the move as a “constructive fraudulent transfer” orchestrated by FTX’s co-founder Sam Bankman-Fried, now serving 25 years for fraud.

Binance, however, is standing firm. They refute the claims as “meritless,” pledging to “vigorously defend” their position. This legal face-off also drags in Zhao’s high-stakes November 6 post , where he cryptically stated, “Liquidating our FTT is just post-exit risk management… but we won’t pretend to make love after divorce.” His comments, alongside a subsequent declaration to liquidate Binance’s FTX holdings, are now under scrutiny as potential triggers that ignited FTX’s downall.

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