The two crypto exchanges have a history of bad blood. Changpeng Zhao, the co-founder and former CEO of crypto exchange Binance, may have thought his legal troubles were over when he was recently released from prison.

The litigation marks the latest escalation of tensions between two of the biggest names in crypto, after the meteoric collapse of FTX rocked the market.

FTX’s bankruptcy estate has launched a $1.8 billion lawsuit against Binance and its former CEO, Changpeng Zhao, accusing them of fraudulent transactions.

The estate of defunct crypto exchange FTX filed a suit against Binance and its former CEO ChangPeng Zhao seeking to recoup almost $1.8 billion FTX alleges was “fraudulently” transferred to Binance and executives by Sam Bankman-Fried as part of a share deal.

The complaint filed yesterday in US Bankruptcy Court in Delaware names Binance and co-founder and former CEO Changpeng Zhao among the defendants. FTX founder Sam Bankman-Fried sold 20 percent of his crypto exchange to Binance in November 2019, but Binance exited that investment in 2021, the lawsuit said.

Imprisoned crypto king Sam Bankman-Fried is now accused of yet even more wrongdoing, this time by the defunct exchange he founded.

The lawsuit relates to Binance’s sale of its stake in FTX, the rival exchange founded by the now-imprisoned Sam Bankman-Fried.