Binance has filed a movement to dismiss a $1.76 billion lawsuit introduced by the FTX property, accusing the defunct crypto change of attempting to deflect blame for its personal failure.
Filed on Could 16 within the Delaware Chapter Courtroom, Binance’s authorized workforce referred to as the go well with “legally poor,” stating that FTX’s collapse was not triggered by market manipulation or hostile motion however by inside misconduct.
“Plaintiffs are pretending that FTX didn’t collapse as the results of one of the large company frauds in historical past,” the submitting mentioned, pointing to Sam “SBF” Bankman-Fried’s conviction on seven counts of fraud and conspiracy.
FTX’s property alleges that Binance obtained billions in crypto throughout a 2021 buyback deal, funded improperly with buyer property.
Binance rejects this declare, stating that “FTX remained a going concern for 16 months” after the share repurchase and that there was “no believable declare” the change was bancrupt on the time.
Associated: Binance wants arbitration for all members of securities class suit
Zhao’s tweet and FTT crash
The lawsuit additionally accuses former Binance CEO Changpeng Zhao of triggering a collapse by way of a tweet on Nov. 6, 2022 asserting the liquidation of FTT tokens.
In response, Binance argued that Zhao’s tweet was based mostly on publicly identified considerations. “Binance’s choice to liquidate its remaining FTT was, actually, ‘due to current revelations ’— specifically, the Nov. 2, 2022, CoinDesk article” that uncovered Alameda Analysis’s steadiness sheet.
The corporate additional defended Zhao’s remark that Binance would intention to reduce market influence. “The Criticism incorporates no such information” to show Binance had no intention of following by way of.
In difficult the court docket’s jurisdiction, Binance mentioned not one of the international entities named “are included in or preserve their principal place of work in america,” and thus fall outdoors the court docket’s attain.
The submitting additionally criticizes the plaintiff’s narrative as “a seize bag of state regulation claims” based mostly on “pure conjecture — a lot of it sourced from a convicted fraudster’s hindsight hypothesis.”
Binance has requested the court docket to dismiss all claims with prejudice. The FTX property has not but filed its response.
Associated: FTX EU creditors can now withdraw money from Backpack exchange
FTX to disburse $5 billion in second spherical of creditor repayments
FTX is set to begin its second round of repayments to collectors greater than two years after submitting for chapter.
In a Could 15 discover, the FTX Restoration Belief introduced that over $5 billion can be distributed beginning Could 30 by way of BitGo and Kraken, focusing on events within the second eligible group beneath the change’s reorganization plan.
In accordance to the plan, 5 creditor teams categorized as “comfort lessons” are anticipated to obtain between 54% and 120% of their claims. In complete, FTX could repay up to $16 billion, relying on the ultimate variety of legitimate claims.
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Cointelegraph by Amin Haqshanas Binance seeks to dismiss $1.76B FTX lawsuit, blames SBF for collapse cointelegraph.com 2025-05-20 11:12:57
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