Binance, Zhao Changpeng implicated in class-action lawsuit, accused of causing FTX collapse, monopolizing the crypto market

Binance and its founder Changpeng Zhao (CZ) are facing a class-action lawsuit brought by residents of California. He is accused of monopolizing the cryptocurrency market by allegedly harming FTX, thus violating federal and California antitrust laws.

CZ Reneges on Acquisition, Leading to FTX Collapse

According to legal documents, defendant Nir Lahav pointed out that CZ announced in a tweet on November 6 that Binance would liquidate the FTT tokens held by FTX.

Subsequently, on November 9, CZ tweeted that they had signed an intent letter to acquire FTX, but the next day, Binance announced that they would withdraw from the deal.

The defendant alleges:

CZ publicly announced on Twitter the withdrawal of the acquisition offer, which severely harmed FTX, ultimately leading to an unprecedented collapse. Furthermore, CZ had already sold off their FTT holdings before announcing the liquidation of FTT, indicating that the tweet was intentionally made to drive down the price of FTT.

The defendant accuses CZ of seven charges and demands compensation for losses, legal fees, and the return of illicit gains.

As part of Binance’s exit from FTX equity last year, Binance received roughly $2.1 billion USD equivalent in cash (BUSD and FTT). Due to recent revelations that have came to light, we have decided to liquidate any remaining FTT on our books. 1/4

— CZ 🔶 Binance (@cz_binance) November 6, 2022

Binance and SBF Face Legal Troubles

The civil lawsuit between Binance and the SEC is still ongoing with no clear resolution in sight.

Meanwhile, SBF is set to appear in court for the first time on October 4.

This is not the first time CZ has been sued by users, and he has not responded to the matter on Twitter.

The U.S. SEC accuses Binance Holdings and Zhao Changpeng of violating securities laws, BNB falls below recent lows, CZ responds

SBF's lawsuit goes to court tomorrow, FTX executives to serve as prosecution witnesses, what witnesses will SBF prepare?