Bankrupt trading company FTX is suing cryptocurrency exchange Binance and its executives for more than $1 billion for allegedly having taken part in a fraudulent transaction with the now-defunct entity.
FTX filed for bankruptcy back in November 2022 after concerns about the company’s financial position triggered a frenzy of customer withdrawals. In a Nov. 10 lawsuit filed at the U.S. Bankruptcy Court for the District of Delaware, FTX sought to recover at least $1.76 billion from Binance and some of its executives that were allegedly paid in a “fraudulent transfer.”
The issue stems from Binance acquiring a 20 percent stake in FTX in 2019. A year later, Binance executives acquired an 18.4 percent stake in a company called West Realm Shires (WRS) that was set up by FTX founder Sam Bankman-Fried….