Binance And CEO Dragged to Court Over Claims Of FTX Manipulation

Binance and its CEO, Changpeng Zhao (often called “CZ”), are in hot water! They are being taken to court in California because people say Binance tried to control too much of the Crypto market and made bad moves towards its competitor FTX.

People who are angry with Binance have started a legal fight. The main issue comes from things that CZ said on social media, particularly Twitter, which they say hurt FTX a lot back in November 2022. CZ said in a tweet, “we have decided to liquidate any remaining FTT on our books.” People in the lawsuit say this wasn’t true and that he said it to make FTX's digital money, FTT, lose value, which it did - a lot!

After that tweet, FTX's token went from being worth $23.1510 each to only $3.1468 each. The lawsuit says, “Zhao’s tweet resulted in FTT price declining… This big drop pushed FTX into bankruptcy without giving FTX’s leaders a chance to fix things.”

Adding some drama, CZ said Binance wanted to buy FTX but then quickly changed his mind a day later. The people suing say, “Zhao publicly spread this information on Twitter and other social media platforms to hurt FTX Entities that lead to a quick and surprising collapse of FTX Entities.”

This lawsuit wants to show the world all the bad things it suggests Binance did to FTX. It demands that Binance pay money, cover court costs, and give back any unfairly earned gains.

Meanwhile, Binance and FTX are both having their own troubles with US legal authorities, making things even more tense in the world of crypto. The legal case against FTX's old CEO, Sam Bankman-Fried, is due to start very soon, and Binance US is being looked into by various US legal groups, including the SEC and the CFTC.

At the time of writing this news, BNB was worth $215.55.