"Huh seriously, CZ won't be as bad as this."
Cryptocurrency giant exchange Binance US and its Chief Executive Officer (CEO) Changpeng Zhao or better known as CZ have been sued in a collective lawsuit in the District Court of Northern California on October 2, 2023.
A California resident named Nir Lahav who started the suit says that Binance US has engaged in unfair competition to undermine FTX which is now facing destruction.
This is because CZ in early November 2022 announced its decision to release Binance's holdings in digital assets founded by FTX, namely FTT on November 6 last year.
Therefore, the plaintiff is of the view that the action is not only misleading but also malicious after CZ was found to have sold FTT before his announcement was made to put pressure on the price.
Lahav also argued that the move by CZ was part of a wider strategy to destabilize FTX as the price of FTT had plunged to $3 from $23 after his tweet.
Later, FTX also experienced bankruptcy, causing its executives and board of directors to be in a state of chaos.
In that sequence, the plaintiffs argue that Binance, which intends to strengthen its position in the crypto market, has committed planned and designed actions to cripple its competitors.
As a result, the suit seeks monetary damages, court costs and disgorgement of ill-gotten gains in seven counts.
