Binance Asks U.S. Court to Dismiss $1.76 Billion | Crypto Work Pro
Binance has requested a Delaware court docket to throw out a
$1.76 billion clawback lawsuit filed by the FTX property, arguing that the
now-bankrupt crypto exchange is concentrating on the incorrect celebration.
According to the court docket paperwork, Binance says FTX’s collapse stems from inner fraud,
not any motion it or former CEO Changpeng Zhao took, and that the case fails to
meet primary legal requirements.
Binance Rejects Claims, Deflects Blame
In a movement filed final week, Binance described FTX’s
case as “legally deficient” and missing any believable foundation. The company
pointed to the conviction and 25-year sentence of FTX founder Sam
Bankman-Fried, calling the company’s downfall “one of probably the most huge company
frauds in historical past.”
Binance has requested a Delaware court docket to dismiss FTX’s $1.76bn asset restoration go well with, calling it “legally untenable,” denying involvement in FTX’s collapse, and arguing the case lacks jurisdiction over the non-U.S. exchange.https://t.co/Tx4w2r7ap4 pic.twitter.com/pKwvMZAPAo
— Telo News (@Telo_Official) May 20, 2025
The FTX property argues the firm was already bancrupt
on the time and financed the deal utilizing misappropriated buyer funds. Binance
disputes the charge. It claims FTX continued to operate for over a 12 months
following the deal, undermining any assertion of prior insolvency.
The exchange additionally mentioned the lawsuit failed to show that
Binance had any data of the source of funds used within the transaction.
FTX additionally accused Zhao of utilizing Twitter to undermine
confidence within the company, pointing to a November 2022 post wherein he mentioned
Binance would sell its FTT holdings “due to recent revelations.” The go well with
means that the tweet sparked a surge in withdrawals and a liquidity disaster at
FTX.
However, Binance argues that the tweet responded to public
reporting, not personal data. “The November 2022 tweets had been posted within the
days following a bombshell report by CoinDesk,” Binance mentioned, including that the
grievance “contains no facts” indicating the posts had been false or deceptive.
Jurisdiction and Legal Boundaries Disputed
Binance additional argues that the court docket lacks
jurisdiction over its overseas company entities. It mentioned none of the
defendants are primarily based within the U.S. or straight carried out the transfers in
query.
The clawback go well with is one of many filed by the FTX
restoration trust to recoup property following the firm’s high-profile
collapse. The chapter left billions in buyer funds lacking and despatched
shockwaves by the crypto industry.
This article was written by Jared Kirui at www.financemagnates.com.
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