The former largest crypto exchange platform, FTX, is now taking the fight to the current biggest DCE (digital currency exchange), Binance, which seeks a whopping $1.76 billion to be returned to the bankrupted company. This is only the start of what FTX is asking from Binance, as the company is looking to take this matter to court and ask for further damages from the existing global crypto leaders.
Part of the complaint is Binance's former CEO, co-founder, and incarcerated executive, Changpeng Zhao, with FTX's former CEO also being mentioned in the filing, particularly with his "fraud" scheme that resulted in this fiasco.
FTX Sues Binance for $1.76B and More For Fraud Transactions
Defunct crypto platform, FTX, has filed a new complaint to the US Bankruptcy Court in Delaware, and this time, it goes after Binance, its renowned rival during its active operations in the industry. The company is now gunning for $1.76 billion to recover from Binance after this was transferred to the crypto exchange platform under Sam Bankman-Fried's orders.
This complaint dates back to 2019 when SBF and FTX made a deal with Binance and its former CEO, Changpeng Zhao, which was to initially sell the company but later offered 20 percent of FTX.
However, Binance is known for cutting the deal off two years later, with FTX making an effort to buy back the said shares owned by Bankman-Fried, to which the company paid $1.76 billion for its return.
It was revealed that FTX and Alameda Research already had an "insolvent" balance sheet in early 2021, making this money transfer headed by Bankman-Fried "fraudulent" based on the US bankruptcy law, as well as an "intentional fraudulent transfer."
Binance, CZ Face Massive Claims from FTX
Now, Binance and Changpeng Zhao are named defendants of FTX's complaint, with the company looking to retrieve the $1.76 billion payment that was transferred during its insolvency, leading to its domino effect a year later when it declared bankruptcy.
However, FTX is not yet done, as the company is looking to seek additional compensatory and punitive damages from Binance regarding this issue, with the defunct company looking to take this to trial.
FTX and Its Quest to Repay Customers
FTX saw a massive win earlier this year when Sam Bankman-Fried faced his fitting fate from the court, with the judge convicting him of seven charges filed against the executive, also getting 25 years in prison. With this, the company is now moving forward towards working to return the money it owes its debtors who asked for their money two years ago when the company first declared its Chapter 11.
It was revealed that under John Ray III's leadership at FTX, the company is set to return the funds that were previously stolen and misplaced by the former CEO, infamously known for maintaining his innocence amidst it all. The defunct crypto exchange platform vowed to do its best to return as much as $12 billion to customers, debtors, and investors whose assets went missing.
To date, it was regarded that FTX has not yet completely recovered all the lost or stolen funds under Bankman-Fried's "fraudulent scheme," with the company still reeling from its losses to fulfill its promise to customers. FTX is now doing its best to retrieve all the money that is rightfully theirs to repay their customers, with Binance and Zhao now facing a multi-billion dollar complaint against its former rival.
