A recently unveiled lawsuit has challenged audience perceptions, targeting the crypto titan Binance and its CEO, Changpeng Zhao. At the heart of the suit is the downfall of the rival crypto exchange FTX, allegedly accelerated by Zhao’s actions.
The claimant, a California dweller named Nir Lahav, raises serious allegations of federal and California law violations pertaining to unfair competition and monopolisation schemes in the cryptocurrency trade. Notably, Zhao’s series of tweets in November is perceived as having played a substantial part in catalysing FTX’s downfall.
The opening act in this online drama involves Binance’s hastily announced decision to liquidate its holdings of FTX’s utility token, FTT. The crypto community was left reeling by the suddenness of the move, even more so when Zhao tweeted about Binance’s intentions to procure FTX, only to rescind the claim a day afterward. It was these eyebrow-raising actions that Lahav believes were executed with malicious foresight, intending to do damage to FTX. Zhao’s Twitter activity in this period is pinpointed in the suit as a key driver in FTX’s swift and dramatic collapse.
The courtroom clash hinges on Zhao’s tweet on the 6th of November, stating the liquidation of FTX’s token from Binance’s books due to “recent revelations”. The suit rebuts this claim, arguing that Binance had already cut ties with its FTT holdings, rendering Zhao’s twitter announcement misleading.
Another potentially damaging disclosure from Zhao’s tweet declaring, “We won’t support people who lobby against other industry players behind their backs.” was taken by the plaintiffs as a veiled jab at FTX CEO Sam Bankman-Fried and his regulatory efforts, further deepening the tension between Binance and FTX.
Alongside piecing together this intriguing narrative, the lawsuit seeks compensation for damage, court expenses, and the return of all unfairly acquired profits. To add intrigue, thousands of individuals are anticipated to join the ranks of the aggrieved party, turning a solitary complaint into a class-action case of considerable magnitude.
To add to their woes, Binance faces the scrutiny of the U.S. Securities and Exchange Commission (SEC). This collision of controversies could dictate the future of Zhao’s grand crypto endeavor.
Source: Cryptonews
