FTX Sues Binance for 1.76 Billion Dollars Over Alleged Fraudulent Deal

FTX's bankruptcy estate has filed a lawsuit against Binance for $1.76 billion, alleging that a 2021 share buyback transaction between the two crypto exchanges was fraudulent. The lawsuit claims that funds used in the deal were misappropriated from FTX customer accounts.

The lawsuit alleges that when FTX repurchased Binance's stake in the company, it used customer funds to finance the transaction, making the payment a fraudulent transfer under bankruptcy law. The case is one of the largest clawback actions in the FTX bankruptcy proceedings.

The legal battle between the estates of FTX and Binance represents one of the most significant disputes in crypto history and could have implications for how the remaining FTX creditors are compensated.