FTX has filed a lawsuit against Binance Holdings and former CEO Changpeng “CZ” Zhao, alleging they received nearly $1.8 billion in a fraudulent buyback of FTX shares orchestrated by Sam Bankman-Fried. According to a November 11 Bloomberg report, FTX claims Binance and CZ received these funds in July 2021, but the transaction is now being questioned in court.

The legal filing states that Bankman-Fried repurchased Binance’s stakes in FTX’s international and U.S. operations, totaling around $1.76 billion, using FTX’s own token, FTT, and Binance-issued tokens, BNB and BUSD. FTX’s legal team argues the transaction was fraudulent, as both FTX and its sister firm, Alameda Research, were allegedly insolvent when the buyback occurred.

FTX’s lawsuit also claims CZ made “maliciously calculated” public statements on social media that contributed to FTX’s collapse. Notably, CZ tweeted in November 2022 that Binance would sell $529 million worth of FTT tokens, a statement that reportedly triggered a wave of withdrawals from FTX by alarmed traders. FTX alleges these posts were intended to harm its business by fueling market panic.

Bloomberg reached out to Binance for comment, but the company has not responded to the allegations.

Since serving a four-month prison sentence, CZ has resumed public appearances and interviews at cryptocurrency events. Meanwhile, Bankman-Fried, currently serving a 25-year prison sentence, is appealing his conviction on grounds that the judge was biased against him.

The lawsuit is part of FTX’s broader attempt to recover funds for creditors and includes actions against other former investors, affiliates, and clients, such as SkyBridge Capital’s Anthony Scaramucci, digital exchange Crypto.com, and advocacy group FWD.US.

In a related lawsuit, FTX’s affiliate, Alameda Research, has filed suit against Waves founder Sasha Ivanov, seeking to reclaim $90 million in cryptocurrency assets.