CZ Binance’s Statement After 150 Million Lawsuit Crypto Derivatives FTX is Facing

For the First Time, Binance Coin Reaches $4 billion Valuation As Asset Nears $30

The crypto derivatives FTX  faces a 150 million lawsuit due to the market manipulations and unlicensed securities sale in the US. The excerpts from the lawsuit uploaded to the Twitter social network by the user under nickname Samuel McCulloch on November 3, means that the FTX platform is accused of “attack” to a Binance platform.

The plaintiff, a strange legal substance known as Bitcoin Manipulation Abatement LLC, claims $ 150 million in exemplary and punitory damages.

According to the plaintiff’s advocates, the FTX platform managed accounts to manipulate the recently launched Binance Bitcoin futures on September 15, 2019.

What Has Happened?

Against the backdrop of a sharp drop in the Bitcoin exchange rate on the Binance Futures platform for Bitcoin, the CEO of the popular digital asset exchange Changpeng Zhao was forced to clarify the situation. The specialist spoke about an attempted attack by the “market maker of a small platform” in a series of tweets. However, he subsequently refused claims against the accused platform.

Then the BTC exchange rate on the platform for Binance Futures trading fell by $ 300. In this regard, representatives of the crypto community suggested an attempt to hack the Binance Futures platform. According to Changpeng Zhao, no one was hurt. Amid a sharp drop in price, the traders’ positions were not liquidated due to the Binance price control index system management.

According to Changpen Zhao, the attacker lost a large amount of money while trying to carry out an attack. The latter allegedly tried to dump the BTC rate, lowering the price of the cryptocurrency from $ 10,324 to $ 10,024.

Even then, the CEO of the trading platform noted that the account of the person who attacked the platform is well known to him since the account has been used to perform transactions on Binance. At the same time, the specialist drew attention to the fact that on the part of the attacker this was the second attempt to hack the Binance platform.

In particular, the co-founder of the FTX exchange was suspected of what had happened.

The CEO of Binance did not specify whether he still had claims against the “suspect” regarding the first hack attempt, which he mentioned earlier. Commentators on the Twitter social network noted that publicly accusing someone of hacking by Changpeng Zhao until the circumstances were clarified seemed extremely unprofessional.

Today, on the issue of this post, Changpen Zhao said the issue has been settled long ago.

“Honestly, all seems very far fetched. We have resolved the issues long ago,” Zhao posts.

As we can see, BTC markets are heavily manipulated, and this shows how it works behind the scenes.

At the moment, FTX has not yet issued comments regarding the lawsuit.

Disclaimer: Our writers invest in cryptocurrencies and it is possible the author of this article has investment in any of the digital currencies discussed. Some times author's presented information may be laced with opinions. Treat articles as mere information and not as financial advice.

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About the author

Victoria Tiebienieva

Victoria Tiebienieva is an Europe based cryptocurrency writer with over 5 years writing experience in the cryptocurrency space.

Victoria has written numerous articles for popular cryptocurrency websites across Europe and beyond. She has spoken about cryptocurrency in notable media houses across her country.


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