An investor who suffered losses from the collapse of cryptocurrency exchange FTX has taken legal action against rival exchange Binance and its CEO, Changpenz “CZ” Zhao. The investor claims that CZ’s tweets contributed to the downfall of FTX.
The lawsuit, led by investor Nir Lahav, accuses Binance and CZ of unfair competition and violations of SEC laws. The filing alleges that Binance attempted to monopolize the cryptocurrency platform market by harming trading platforms operated by FTX. It also provides a breakdown of CZ’s tweets, stating that they caused a 14% drop in the price of FTX’s native token, FTT, within 24 hours.
FTX’s token, FTT, is currently priced at $1.15. The filing claims that CZ publicly disseminated information on social media platforms to undermine FTX Entities, which led to a rushed and unprecedented collapse. The defendants are said to be dissatisfied with former FTX CEO Sam Bankman-Fried’s advocacy of regulation.
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