A class action lawsuit was filed on Oct. 2 in California federal court accusing cryptocurrency exchange Binance and its CEO Changpeng Zhao (CZ) of unfair competition and manipulating the market to trigger the downfall of rival exchange FTX.
The lawsuit was filed by an FTX user who lost assets when FTX collapsed and filed for bankruptcy last month. It alleges Binance, which held a stake in FTX’s FTT token, made false public statements about selling that stake, causing FTT’s price to decline, then made misleading statements about intending to acquire FTX, temporarily stabilizing FTT’s price before again declining an acquisition.
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