Crypto: FTX Accuses Binance Of Sabotage And Demands $1.8 Billion

FTX is in a disastrous financial situation, lacking liquidity and desperately seeking solutions. In an effort to shore up its finances, the company is exploring old assets of Sam Bankman-Fried, while Binance CEO Changpeng “CZ” Zhao is in turn under fire from accusations. According to a recent complaint, FTX accuses Binance of unfair maneuvers in an attempt at destruction that would have precipitated its bankruptcy.

FTX denounces a fraudulent agreement with Binance

In July 2021, a large-scale financial agreement between FTX and Binance was allegedly orchestrated under false pretenses, according to the new complaint filed by the entity managing FTX’s bankruptcy. This contract, representing a colossal sum of $1.76 billion, was allegedly paid through a mix of FTX tokens (FTT), as well as BNB and BUSD, the cryptocurrencies controlled by Binance.

The case takes a complex turn as FTX claims that this agreement was made when FTX and Alameda Research were already insolvent. Among the elements cited in the complaint:

• A transfer of $1.76 billion deemed “fraudulent”;
• A sale of 20% of FTX International;
• A buyback of shares in FTX US valued at 18.4%.

FTX claims that this transaction would have allowed Binance to exploit FTX’s assets to increase its own market share in the crypto world.

CZ of Binance accused of maneuvers against FTX

The tensions between Changpeng Zhao, aka “CZ”, and Sam Bankman-Fried seem to have reached a peak before FTX’s collapse. According to the complaint, CZ allegedly orchestrated a “fear campaign” against FTX to undermine the company’s credibility with investors.

This strategy, labeled as “FUD” (Fear, Uncertainty, Doubt), supposedly culminated in November 2022 with the massive liquidation of FTT by Binance, leading to a spectacular drop in the price of this altcoin.

FTX’s lawyers also accuse CZ of making misleading statements aimed at manipulating public opinion regarding the fate of the FTX acquisition. The promise to buy FTX was, according to them, just a smokescreen to prevent the struggling company from seeking other financing, thereby exacerbating the crisis.

“By the time Zhao tweeted, Binance had already sold a massive amount of FTT“, states the complaint.

In conclusion, FTX is under pressure to honor its commitments to its clients, who are struggling to recover their funds at 100%. This situation may explain the active search for alternative financing.