FTX Seeks to Recover $1.76 Billion
FTX has filed a lawsuit against Binance and its founder Changpeng Zhao, aiming to recover $1.76 billion, which it claims was fraudulently transferred as part of a share repurchase deal in 2021. The suit argues that the transaction, completed when FTX was already insolvent, was part of a broader scheme that contributed to FTX’s eventual collapse.
Details of Alleged Fraudulent Transfers
The lawsuit claims that Binance initially acquired a 20% stake in FTX in 2019, later selling it back to FTX in 2021 for $1.76 billion in FTT and other tokens. FTX alleges the deal was funded improperly, with Alameda Research reportedly using customer deposits to finance the repurchase.
Binance Dismisses Claims as “Meritless”
Binance has denied FTX’s allegations, calling the claims “meritless.” This case adds to a series of lawsuits from the FTX estate aimed at recouping funds, underscoring the financial complexities and disputes surrounding FTX’s collapse.
