The property of collapsed crypto speech FTX has filed a suit against Binance and its erstwhile CEO Changpeng Zhao successful an effort to wrest backmost astatine slightest $1.76 billion, citing a "fraudulent" stock deal.
In a Sunday filing with a Delaware court, FTX cites a 2021 transaction successful which Binance, Zhao and others exited their concern successful FTX, selling a 20% involvement successful the level and a 18.4% involvement successful its U.S.-based entity West Realm Shires backmost to the company.
The FTX property alleges that the stock repurchase was funded by FTX's Alameda Research part done a operation of the company's and Binance's speech tokens, arsenic good arsenic Binance's dollar-pegged stablecoin.
"Alameda was insolvent astatine the clip of the stock repurchase and could not spend to money the transaction," the suit claims, labeling the woody agreed with FTX co-founder Sam Bankman-Fried — who's present serving a 25-year condemnation implicit fraud linked to the downfall of his speech — arsenic a "constructive fraudulent transfer."
CNBC has reached retired to Binance for comment.
The litigation marks the latest escalation of tensions betwixt 2 of the biggest names successful crypto, aft the meteoric illness of FTX rocked the market.
This breaking quality communicative is being updated.
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