The lawsuit further claims that while FTX was “in freefall, Zhao sent additional false tweets calculated, in part, to prevent FTX from seeking and obtaining alternative financing to cauterize the run on the institution by customers deceived by the tweets. Collectively and individually, these false public statements destroyed value that would have otherwise been recoverable by FTX’s stakeholders.”
Binance calls lawsuit “meritless”
On November 8, 2022, Bankman-Fried and Zhao agreed to a deal in which “Binance would acquire FTX Trading and inject capital sufficient to address FTX’s liquidity issues,” the lawsuit said. But the next day, Binance published tweets saying it was backing out of the deal “as a
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