FTX Sues Binance for $1.76B Over “Fraudulent” Deal
Hey FinTech Fanatic!
The FTX estate is now on a relentless mission to recover what it claims as losses from none other than Binance and its former CEO, Changpeng Zhao. According to FTX’s latest court filing in Delaware, it seeks a staggering $1.76 billion, alleging a “fraudulent” deal orchestrated by Zhao and others during a 2021 exit from FTX.
FTX claims that its Alameda Research arm, already insolvent at the time, funneled both company and Binance assets into repurchasing a 20% share in FTX and an 18.4% stake in its U.S. branch, West Realm Shires. The filing labels the move as a “constructive fraudulent transfer” orchestrated by FTX’s co-founder Sam Bankman-Fried, now serving 25 years for fraud.
Binance, however, is standing firm. They refute the claims as “meritless,” pledging to “vigorously defend” their position. This legal face-off also drags in Zhao’s high-stakes November 6 post, where he cryptically stated, “Liquidating our FTT is just post-exit risk management… but we won’t pretend to make love after divorce.” His comments, alongside a subsequent declaration to liquidate Binance’s FTX holdings, are now under scrutiny as potential triggers that ignited FTX’s downall.
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FINTECH NEWS
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🇲🇾 SEA payment platform Tranglo expands to three Gulf states. This move addresses the demand for efficient remittance services, as the Gulf Cooperation Council region is home to over 31 million migrant workers, primarily from South and Southeast Asia, who depend on remittances.
🇸🇦 Silicon Valley’s General Catalyst makes first investment into Saudi Arabia through FinTech Lean Technologies. This, Lean Technologies CEO and co-founder Hisham Al-Falih told CNBC, signifies a 'huge vote of confidence in their view of Saudi's growth trajectory and its potential over the next decade.
PAYMENTS NEWS
🇸🇬 Airwallex joins the Pledge 1% Movement, setting aside equity (US$56M) to support the next generation of entrepreneurs. "As Airwallex enters our 10th year as a business, the time is right to build on our community initiatives to date and commit to an enduring impact program," said Airwallex CEO and Co-founder Jack Zhang.
🇹🇷 Thunes and Papara establish a bilateral partnership to enable cross-border transfers to and from Türkiye. This alliance allows Papara users in Türkiye to send money to over 3 billion wallets, 4 billion bank accounts, and 15 billion cards across 130 countries—making fast, affordable international transfers to Papara accounts possible for the first time.
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🇸🇦 BuzzAR launches BuzzPay, an AI-powered FinTech. The platform is designed to fully digitalise the payment processes for one million travelers, particularly from Asia, with a projected economic impact of USD 3.2 billion in Saudi Arabia by 2026.
🇮🇳 Careem Pay introduces instant transfers to Europe and business payments to India. Careem Pay, the digital wallet and FinTech platform within the Careem Everything App, has introduced a new remittance feature enabling secure transfers to businesses abroad, starting with India.
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🇬🇧 USI Money to implement Visa Direct to enable fast, seamless payments. The integration of USI Money's technology with Visa Direct enables customers to send money directly to bank accounts and digital wallets worldwide, solidifying USI Money's position as a leading payment provider with diverse payout options.
DIGITAL BANKING NEWS
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BLOCKCHAIN/CRYPTO NEWS
🇺🇸 FTX sues crypto exchange Binance and its former CEO Zhao for $1.8 billion. FTX alleges Binance and Zhao sold back stakes in FTX and its U.S. entity, funded by Alameda Research’s use of FTX and Binance tokens plus Binance’s stablecoin. More here
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PARTNERSHIPS
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DONEDEAL FUNDING NEWS
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🇧🇷 Brazilian FinTech Tako emerges from stealth with sizable seed round led by a16z and Ribbit Capital. Tako launched its product in 2023, with CEO Fernando Gadotti noting the company processed tens of millions in payroll while operating in stealth. He also said the company plans to expand as it grows into building more features like instant payments.
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M&A
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MOVERS & SHAKERS
🇪🇸 PayRetailers appoints Patrick Lemay as Head of Corporate Development. With over 16 years of experience across FinTech, financial services, and payments, Patrick brings valuable expertise to PayRetailers’ corporate development team. Throughout his career, Patrick has managed high-profile projects in both the private and public sectors.
🇬🇧 Paytently hires veteran salesperson and FinTech exec to senior role. Paul Marcantonio has been appointed General Manager of Paytently, bringing 20 years of FinTech experience to support the company’s growth amid rapid technological advancements transforming the industry.
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