FTX sues Binance, Zhao Changpeng faces a $1.8 billion recovery claim

ChainCatcher news, FTX sues Binance, former CEO Changpeng Zhao faces a $1.8 billion clawback demand. In the filing, the plaintiffs claim that Binance, its former CEO Changpeng Zhao, and other Binance executives obtained at least $1.76 billion worth of cryptocurrency through fraudulent transfers from FTX.

The transaction was a buyback agreement reached between Binance and FTX co-founder Sam Bankman-Fried in July 2021, who is currently serving a 25-year sentence. In that transfer, Bankman-Fried sold approximately 20% of FTX's international business and 18.4% of its U.S. entity West Realm Shires Services (operating under the name FTX US).