As a seasoned analyst with over two decades of experience in the financial industry, I find myself intrigued by this ongoing saga between FTX and its peers. The latest development involving Binance and Changpeng Zhao is a fascinating twist that sheds light on the complex web of relationships within the cryptocurrency exchange ecosystem.


Even though it collapsed more than two years back, the previous major cryptocurrency trading platform, FTX, is still working diligently on recovering a significant amount of money from its previous investors.

Recently, the company founded by Sam Bankman-Fried has taken legal steps involving Binance and its previous CEO, Changpeng Zhao.

According to Bloomberg’s report, the legal team for FTX is pursuing a lawsuit aiming to recover approximately $1.8 billion that they allege was illegitimately moved by the company’s former CEO, SBF.

Based on the report, it’s stated that SBF moved approximately $1.76 billion worth of FTT, BNB, and BUSD to Binance, certain executives within Binance, and CZ in July 2021. This action led to the sale of about 20% of FTX’s international division and slightly over 18% of its U.S. subsidiary.

The document also claims that FTX and Alameda Research might have been financially insolvent since their founding, and without a doubt, they were facing insolvency issues on their balance sheets by early 2021. This alleged state of insolvency raises questions about the legitimacy of any subsequent transfers made, as they could potentially be classified as fraudulent.

The present management team at FTX has also accused Sam Bankman-Fried (SBF) of tweeting false, misleading, and potentially fraudulent statements that may have hastened the downfall of the exchange he led.

Keep in mind that CZ announced on November 6, 2022, his company intended to liquidate all its FTT tokens, valued approximately at $530 million. Almost instantly following this announcement, users started withdrawing funds, and within a short span of time, the exchange faced collapse.

After that, the new management of the now-dissolved company has taken action by filing multiple lawsuits against previous business associates and financiers. Notably, they’ve just resolved a court case with Bybit, receiving a settlement worth $228 million.

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2024-11-11 12:18