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- FTX and Aameda are seeking $1.9 billion from Binance and cofounder Changpeng Zhao according to a recently filed lawsuit.
- The emergence of the lawsuit affected the crypto market, causing Binance Coin (BNB) to drop nearly 1.80% and trading at $625 at the time of writing.
In an effort to recover funds suffered from the FTX collapse in November 2022, FTX and Alameda have filed lawsuits totaling $1.9 billion against major crypto players Binance Holdings Ltd., its CEO Changpeng Zhao (CZ), and the Waves platform on Sunday, according to Bloomberg.
The former CEO Sam Bankman-Fried (SBF) is accused of moving illegally. The lawsuit claims that these funds were part of a July 2021 deal where Binance and CZ bought significant shares in FTX’s international and US branches, specifically 20% and 18.4%.
The lawsuit affected the crypto market, causing Binance Coin (BNB) to drop nearly 1.80% and trading at $625 at the time of writing. The decline shows how the crypto market is sensitive to legal issues involving major exchanges and their leaders.
Alameda Sues to Recover $90M Allegedly Misused
Alameda took legal action by filing a lawsuit on the same day. The company aims to recover about $90 million, which Ivanov and groups connected to Waves through the Vires Finance platform are accused of taking. The lawsuit states that the initial $80 million deposited with Vires in March 2022, in USDT and USDC, was changed into USDN, increasing the total to around $90 million.
Alameda claims that Ivanov manipulated the value of WAVES tokens through hidden deals, diverting funds from Vires. The filing states;
While Ivanov marketed Waves and Vires as opportunities for lenders and other users to make substantial profits, Ivanov secretly orchestrated a series of transactions that artificially inflated the value of WAVES, while at the same time siphoning funds from Vires,
Although the FTX estate has tried to recover assets, Alameda reports little communication from Ivanov, who has mostly ignored outreach since a call in January 2023, making it harder to recover suffered funds.
After Alameda filed a lawsuit, the price of Waves (WAVES) went up slightly by 1.60%, reaching $1.16, according to CoinMarketCap. However, Waves still faces problems, such as Binance deciding to remove the token in June, which has harmed its liquidity and market presence.
That strategy involves the FTX estate aiming to recover billions of dollars for creditors affected by FTX’s collapse. In a strong effort to recover funds, over 20 lawsuits have been filed in the past week against various people and organizations, including Anthony Scaramucci, CEO of SkyBridge Capital, and Jean Chalopin, chairman of Deltec Bank, among others.
FTX Pursues Legal Action For Missing Billions
FTX has sued the team behind Storybook Brawl, a game backed by former FTX CEO Sam Bankman-Fried. FTX wants $25 million back from its investment in the game, plus $2 million for salaries and bonuses paid to the game’s team. Due to its involvement in FTX, the game was closed down in May 2023.
FTX has also filed a major lawsuit against Meerun, accused of stealing over $1 billion from FTX through market manipulation and unauthorized withdrawals. Known as “Humpty the Whale,” Meerun allegedly manipulated tokens like BMTX and MOB on the platform, allowing him to withdraw $450 million before he was stopped. Despite these actions, Meerun has filed a claim to recover $12 million, which helped FTX administrators discover his real identity and address.
