FTX vs. Zhao
Changpeng ‘CZ’ Zhao, the founder and former CEO of the world’s largest stock exchange, Binance, has moved to court to dispute a lawsuit against him by collapsed exchange FTX. Initially submitted in November in November, the lawsuit to reclaim $ 1.8 billion in various cryptocurrencies that were sent to Binance four years ago.
The court applications from FTX show that the funds were transferred to the exchange of ZHAO in July 2021 after former FTX CEO Sam Bankman-Fried was concluded a deal to buy back a 20% shareholding that Binance stopped at the time. The two stock markets started their strategic relationship in 2019 when Binance became an early investor in FTX.
Why did the FTX right case against ZHAO submitted?
However, the relationship became sour, so Bankman was fried to end it by buying back the importance of Binance with the help of FTX’s Native Token FTT. It was later discovered that Bankman-Gefiedeur user funds had darkened to close the stock buying. Now the FTX estate, charged with reclaiming funds and compensating for affected FTX users, has told the court that the transfer of $ 1.8 billion to Binance was fraudulent and that his former CEO, Zhao, who supervised the transaction, should make a refund.
In his defense, Zhao, through his lawyers, argued that he did not immediately receive the crypto assets in question. He claims that he was only a “nominal signer”, not the recipient of the funds.
FTX accuses ZHAO of contributing to the collapse of the exchange
In addition to the search for a refund, FTX CZ has accused of playing a key role in bringing down FTX. In its lawsuit, the stock market claims that Zhao’s tweets caused tension among users in November 2022, so that they withdraw considerable amounts of money that FTX cannot handle, causing its sudden downfall.
In the meantime, Caroline Ellison, the former boss of FTX’s sister company Alameda Research, told the court in October 2023 that the stock market was already bankrupt due to reckless loans, even before November, when Zhao shared his tweets about the situation of FTX. Bankman-Grieduurduurd, the man who gave illegal loans from customers permission, was imprisoned for 25 years last year. Interestingly, CZ was also locked up for four months in 2024 after he was found guilty of breaking various anti-money laundry policies.
At Tokenhell we help more than 5,000 crypto companies to strengthen their content range – and you can come to them! For questions, contact us at info@tokenhell.com. Remember that cryptocurrencies are very volatile assets. Always conduct a thorough investigation before taking investment decisions. Some content on this website, including messages under Crypto Cable, sponsored articles and press releases, is supplied by guest contributions or paid sponsors. The views in these messages do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality or reliability of third -party content, advertisements, products or banners on this site. Consult our full conditions / disclaimer for more information.
#Binance #CEO #Changpeng #Zhao #Court #reject #1.8b #case #FTX #Tokenhell