FTX Launches $1.8B Legal Battle Against Binance and Scaramucci

The FTX estate is suing Binance and its former CEO Changpeng Zhao to recover $1.76 billion, alleging fraudulent transfers during a shares repurchase deal in 2021. FTX claims the transaction was unlawful due to its insolvency at the time, following fraud by co-founder Sam Bankman-Fried, who is serving a prison sentence for misappropriating customer funds. The lawsuit also accuses Zhao of making misleading tweets that contributed to FTX's collapse. Binance denies the allegations, calling them meritless. This is one of over 20 lawsuits filed by FTX to reclaim funds for creditors.