A class action lawsuit was filed against Binance, the world’s largest cryptocurrency exchange, and CEO Changpeng Zhao (CZ) by US investors, claiming that they triggered the FTX collapse.
An investor group, claiming that the bankruptcy of the cryptocurrency exchange FTX in November 2022 was triggered by the social media posts of Binance CEO CZ, filed a lawsuit against the exchange’s US subsidiary Binance.US and the CEO. The case is filed against a person who is stated to reside in California. Nir Lahav was opened under the leadership of a class action lawsuit was presented in status.
The case file also includes Binance’s US subsidiary The holdings behind Binance.US BAM Trading And BAM Managementwas also included.
Before FTX’s bankruptcy in November 2022, CZ’s social media posts were indeed on the agenda and the cryptocurrency community criticized the CEO at that time. serious criticism he had directed. One of the triggers of the developments in those days was the on-chain analysis platform Whale Alert. shared There was a post.
What happened?
Whale Alert gives nearly 23 million to Binance FTX Token (FTT) He stated that he was transferred. Then shortly after on social media speaking CZ, Binance’s FTT issued by rival exchange FTX will sell your entire position He confirmed. In a short time, the rapidly growing chaos environment brought with it the users’ By trying to withdraw their money from FTX It had become an unbearable situation.
However, CZ first died within the same days. Interested in purchasing FTX and this rumor brought with it an increase in FTT, but then this gave up on the purchase He drew attention by explaining.
The plaintiffs say that this move of CZ It’s just trying to monopolize the cryptocurrency market He argued that he was openly attacking his opponent through the fear he spread:
CZ publicly disseminated this information regarding the withdrawal of the buyout offer on Twitter and other social media platforms to damage FTX assets, ultimately leading to a rushed and unprecedented collapse of FTX assets.
On the other hand, the plaintiffs cited CZ’s statement “We are not against anyone. However, we will not support people who lobby against other industry players behind their backs.” he put forward his statement. Plaintiffs claim this statement as Binance’s S.BF as someone who opposes regulations He interpreted it as a characterization.
The companies in question and CZ were sued by the SEC on the grounds that they violated US securities rules.