Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao (CZ) are facing a class action lawsuit in California federal court. The lawsuit was filed by an FTX user who lost assets when FTX collapsed and filed for bankruptcy last month. It alleges that Binance, which held a stake in FTX’s FTT token, made false public statements about selling that stake, causing FTT’s price to decline, then made misleading statements about intending to acquire FTX, temporarily stabilizing FTT’s price before again declining an acquisition.The lawsuit claims that Binance had invested in FTX’s FTT token in 2019 and owned up to 5% of the total FTT supply. On Nov. 6, CZ tweeted that Binance would sell its remaining FTT due to “recent revelations,” causing FTT to drop 14% in 24 hours. However, the lawsuit claims Binance had already sold 23 million FTT worth $530 million the day before Zhao’s tweet.The lawsuit asserts that CZ deliberately misled the market to trigger a decline in FTT and undermine confidence in rival FTX. It further alleges that tweets by CZ on Nov. 7 about Binance signing a nonbinding letter of intent to acquire FTX were also misleading, temporarily halting FTT’s slide. The next day, CZ tweeted that Binance would not acquire FTX after all, sending FTT plunging again and forcing FTX into bankruptcy.The class action accuses Binance and CZ of unfair competition, market manipulation, fraudulent practices, and making false statements, asserting that their actions were driven by animosity toward FTX and its founders’ lobbying for greater crypto regulation. It claims Binance engaged in ‘bait and switch’ tactics to accelerate FTX’s collapse after Binance sold its FTT stake. The lawsuit seeks damages for FTX users unable to access their funds as well as disgorgement of Binance’s alleged ill-gotten gains from benefitting at FTX’s expense.Binance and its CEO Changpeng Zhao (CZ) are facing a class action lawsuit in California federal court. The lawsuit was filed by an FTX user who lost assets when FTX collapsed and filed for bankruptcy last month. It alleges that Binance, which held a stake in FTX’s FTT token, made false public statements about selling that stake, causing FTT’s price to decline, then made misleading statements about intending to acquire FTX, temporarily stabilizing FTT’s price before again declining an acquisition.The lawsuit claims that Binance had invested in FTX’s FTT token in 2019 and owned up to 5% of the total FTT supply. On Nov. 6, CZ tweeted that Binance would sell its remaining FTT due to “recent revelations,” causing FTT to drop 14% in 24 hours. However, the lawsuit claims Binance had already sold 23 million FTT worth $530 million the day before Zhao’s tweet.The lawsuit asserts that CZ deliberately misled the market to trigger a decline in FTT and undermine confidence in rival FTX. It further alleges that tweets by CZ on Nov. 7 about Binance signing a nonbinding letter of intent to acquire FTX were also misleading, temporarily halting FTT’s slide. The next day, CZ tweeted that Binance would not acquire FTX after all, sending FTT plunging again and forcing FTX into bankruptcy.The class action accuses Binance and CZ of unfair competition, market manipulation, fraudulent practices, and making false statements, asserting that their actions were driven by animosity toward FTX and its founders’ lobbying for greater crypto regulation. It claims Binance engaged in ‘bait and switch’ tactics to accelerate FTX’s collapse after Binance sold its FTT stake. The lawsuit seeks damages for FTX users unable to access their funds as well as disgorgement of Binance’s alleged ill-gotten gains from benefitting at FTX’s expense.Binance, the world’s largest cryptocurrency exchange, and its CEO Changpeng Zhao (CZ) are facing a class action lawsuit in California federal court. The lawsuit alleges that Binance made false public statements about selling its stake in FTX’s FTT token, causing FTT’s price to decline, then made misleading statements about intending to acquire FTX, temporarily stabilizing FTT’s price before again declining an acquisition. It further alleges that Binance engaged in ‘bait and switch’ tactics to accelerate FTX’s collapse after Binance sold its FTT stake. The lawsuit seeks damages for FTX users unable to access their funds as well as disgorgement of Binance’s alleged ill-gotten gains from benefitting at FTX’s expense.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | |
| Sentiment | negative |
| Relevance Score | 8 |
| People | FTX user, Binance CEO, Changpeng Zhao (CZ), FTX founders |
| Companies | Flickr, Changpeng Zhao (CZ), Binance, FTX, Web Summit |
| Currencies | FTX, Ethereum, Bitcoin, US Dollar |
| Securities | None |
