The bankruptcy estate of the defunct cryptocurrency exchange FTX has filed a lawsuit against Binance and its former CEO, Changpeng Zhao, as it intensifies efforts to recover assets amid a complex and high-profile bankruptcy process.
The lawsuit, lodged on November 10, seeks to reclaim nearly $1.8 billion, which the FTX estate claims was transferred improperly to Binance and its executives.
At the center of the case is a 2021 share repurchase agreement, in which FTX co-founder Sam Bankman-Fried, now serving a 25-year prison sentence, repurchased stakes from Binance in both FTX’s international division and its U.S. affiliate, West Realm Shires Services, which operates as FTX US.
This transaction involved the transfer of an approximately 20% stake in FTX’s global unit and 18.4% in FTX US to Binance. The plaintiffs argue that Bankman-Fried used a combination of FTX’s native token (FTT), Binance Coin (BNB), and Binance USD (BUSD) to facilitate the buyout, collectively valued at $1.76 billion at the time.
The FTX estate’s legal efforts are part of broader industry shifts that have seen greater regulatory scrutiny of cryptocurrency exchanges and a push for transparency and accountability in digital asset management. With multiple ongoing lawsuits, the FTX case continues to reveal complexities in financial practices within the cryptocurrency space, spotlighting industry practices that some regulators argue may necessitate stricter oversight.
Deborah Dan-Awoh is a seasoned lifestyle analyst with a knack for storytelling. The focus of her work covers people, money and culture as it relates with business and economy. When she’s not keeping tabs on the latest trends in lifestyle and finance- Deborah enjoys networking with industry experts to gain insight into major markets as it affects the populace
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