**FTX Files Lawsuit Against Binance and Former CEO to Recover $1.8 Billion Amid Bankruptcy**

In a significant turn in the ongoing FTX bankruptcy case, the fallen cryptocurrency exchange has filed a lawsuit targeting Binance and its former CEO, Changpeng "CZ" Zhao. The claim seeks to recover $1.8 billion, alleging fraudulent transfers.

According to a Cointelegraph report, the plaintiffs assert that Binance, CZ, and other executives received at least $1.76 billion in cryptocurrencies through dubious means. These transactions are linked to Binance's agreement to repurchase stakes from Sam Bankman-Fried, FTX's co-founder who is now serving a 25-year prison sentence. Bankman-Fried is accused of illegally selling about 20% of FTX's international entity and 18.4% of its U.S. entity, West Realm Shires Services, known as FTX US.

The contested deal was financed using a combination of digital assets, including the FTX token (FTT), Binance Coin (BNB), and the stablecoin Binance USD (BUSD). A Binance spokesperson has described FTX's claims as baseless and stated the company would "vigorously" defend itself. FTX declined to comment when approached by Benzinga.

This lawsuit aligns with FTX's broader strategy to address its bankruptcy by pursuing legal actions against various cryptocurrency firms. Recently, FTX also sued former White House communications director Anthony Scaramucci and his hedge fund, SkyBridge Capital, to recover funds for creditors of the bankrupt exchange.

Just last month, a U.S. bankruptcy judge approved a plan for FTX to repay creditors up to $16.5 billion, with 98% of creditors set to receive full repayment plus additional compensation. Once a major player in the cryptocurrency sector, FTX's downfall in 2022 followed revelations involving the misuse of customer funds, illicit political donations, and luxury real estate transactions by Bankman-Fried and his associates.