FTX on $150M Lawsuit: “We Agree” with Binance’s Stance

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FTX, a crypto derivatives platform incubated by Alameda Research, is the target of a new $150 million lawsuit accusing it of market manipulation and the sale of unlicensed securities in the US. The complaint, which was brought to light on Twitter by Samuel McCulloch, host of the End of the Chain podcast, also contains passages alleging that FTX previously attempted to “attack” Binance.

McCulloch also pointed out that among other things, “the complaint alleges that @FTX_Official ran an unlicensed money transmitting business with its OTC desk.”

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Changpeng Zhao, CEO of Binance, also tweeted about the lawsuit, saying that it didn’t seem very credible.

“Only scanned through the parts that explicitly had the word Binance. Honestly, all seems very far fetched. We have resolved the issues long ago,” he wrote on Twitter.

Alameda fires back

Alameda, the “incubator” of FTX, has responded to the complaint letter with a Medium post.

“Although we have not been served, a complaint written by a lawyer against Alameda has been circulating on the Internet,” the post reads, adding that “the nuisance suit is riddled with laughable inaccuracies, including mistaking the entire business model of Alameda.”

“It is an unfortunate reality that it is easy to file bullshit lawsuits and annoying to fight them, and some assholes will use this as an excuse to extort anyone they see as high profile,” the post says.

 

 

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