$1.76 Billion Lawsuit Rocks Binance and Ex-CEO CZ

FTX Trading Ltd.'s recovery trust has been given the green light to pursue Binance Holdings Ltd. and its former CEO Changpeng Zhao for $1.76 billion in a lawsuit related to a share repurchase agreement. The trust alleges that the funds were fraudulently transferred by Sam Bankman-Fried, who was the CEO of FTX at the time.

The court ruling comes after Binance and Zhao successfully defeated claims for damages related to the November 2022 collapse of rival cryptocurrency exchange FTX. However, Judge Karen B. Owens of the US Bankruptcy Court for the District of Delaware ruled that the recovery trust can still pursue the $1.76 billion paid during a 2021 share repurchase agreement.

The lawsuit is ongoing, and it remains to be seen how much Binance and Zhao will ultimately have to pay if they are found liable. The court's decision is a significant development in the ongoing saga of FTX's collapse and its aftermath.