The estate of collapsed crypto exchange FTX has filed a suit against Binance and its former CEO Changpeng Zhao in an effort to wrest back at least $1.76 billion, citing a "fraudulent" share deal.
The FTX estate alleges that the share repurchase was funded by FTX's Alameda Research division through a combination of the company's and Binance's exchange tokens, as well as Binance's dollar-pegged stablecoin.
Binance denies the allegations, saying in an emailed statement: "The claims are meritless, and we will vigorously defend ourselves."
That same month, Binance's Zhao pleaded guilty to charges of violating the Bank Secrecy Act for failing to put in motion an effective anti-money laundering program and for breaching U.S. economic sanctions.
In another post cited, he said: "As part of Binance's exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT).
Persons:
FTX, Changpeng Zhao, Zhao, Sam Bankman, Binance, Fried, Binance's Zhao, LUNA
Organizations:
Binance, Shires, FTX's Alameda Research
Locations:
Delaware, FTX, Alameda