Hold onto your hats, crypto enthusiasts, because the drama with FTX is far from over! The crypto exchange that famously crashed and burned just over two years ago is on a relentless mission to recoup a mountain of cash from its former allies.
In its latest legal escapade, FTX, the brainchild of Sam Bankman-Fried, is setting its sights on Binance and its ex-CEO, Changpeng Zhao. They're trying to reel back a whopping $1.8 billion, claiming it was sneakily siphoned away by none other than SBF himself.
The juicy details? Allegedly, back in July 2021, SBF sent a cool $1.76 billion in FTT, BNB, and BUSD to Binance and some of its top dogs, including CZ. In exchange, they sold a chunk of FTX's international and US units. But hold up, FTX is now waving the red flag, arguing that these transfers were fraudulent since they were already knee-deep in financial woes by early 2021.
The plot thickens as FTX's current leadership accuses CZ of stirring the pot with what they call “false, misleading, and fraudulent tweets,” which they say sped up FTX's downfall. Remember that iconic tweet from November 6, 2022, when CZ announced Binance's plans to dump its FTT holdings, worth about $530 million? That sparked a frenzy, leading to a whirlwind of withdrawals and FTX’s rapid collapse in just days.
Since then, FTX's new crew has been busy in the courtroom, taking on former partners and investors left and right. They recently wrapped up a legal scuffle with Bybit, walking away with a cool $228 million. Stay tuned, because with FTX, the saga never ends!
