Binance and its CEO, Changpeng Zhao, are embroiled in a class-action lawsuit, filed by Nir Lahav, accusing them of attempting to monopolize the crypto market through damaging strategies against competitor FTX.
📰 Twitter Statements Under Scrutiny
Zhao’s Twitter statements, particularly regarding the liquidation of FTT holdings and a short-lived intention to acquire FTX, are central to the lawsuit. The plaintiffs argue that these were designed to negatively impact FTT’s price and destabilize FTX.
📰 FTT Price Plunge
A significant drop in FTT’s price, from $23.1510 to $3.1468, followed Zhao’s tweet about liquidating FTT, pushing FTX towards bankruptcy and is highlighted as a critical event in the lawsuit.
📰 Acquisition Intent and Withdrawal
Zhao’s announcement of Binance’s intent to acquire FTX, followed by a quick rescindment, is alleged to have been a strategy to harm FTX, leading to its rapid collapse.
📰 Legal and Regulatory Implications📰???? Legal and Regulatory Implications
The lawsuit, rooted in federal and California law related to unfair competition, demands monetary damages and disgorgement of gains across seven counts, alleging malicious tactics against FTX.
📰 SEC Actions and Investigations📰???? SEC Actions and Investigations
Both Binance and FTX are entangled in separate SEC actions, indicating broader regulatory pressures in the crypto industry. Binance US is under investigation by several US authorities, including the SEC, CFTC, and potentially the DOJ.
📰 Upcoming Trials and Investigations
The criminal case against former FTX CEO, Sam Bankman-Fried, is set to begin on October 4th in New York, while Binance and CZ are speculated to be under ongoing scrutiny by the DOJ.
Stay tuned for more updates, Paradisers!
ParadiseTeam 🌴
