Binance's request to dismiss FTX's $1.76 billion lawsuit

Binance argued that there is no legal basis for the $1.76 billion compensation lawsuit filed by FTX. The company stated that FTX's bankruptcy was due to its own mistakes and fraud.

Binance, one of the world's largest cryptocurrency exchanges, has filed a motion in a bankruptcy court in Delaware, requesting the dismissal of a lawsuit filed by FTX. Binance stated that the lawsuit is both legally unfounded and lacks a factual basis.

In the petition submitted to the court by Binance, it was emphasized that the company is not responsible for the collapse of FTX. Additionally, the firm reminded that FTX's bankruptcy resulted from "one of the largest corporate frauds in history" and that the founder of FTX, Sam Bankman-Fried, received a 25-year prison sentence due to this fraud.

The lawsuit is based on a share buyback agreement in which FTX transferred $1.76 billion worth of cryptocurrency to Binance in July 2021. FTX had previously sold a 20% stake to Binance, which was bought back using BNB, BUSD, and FTT tokens. The FTX side claims that at that time the company was in a state of bankruptcy and that customer funds were used without permission.

However, Binance pointed out that FTX continued to operate for 16 months after this agreement, arguing that claims of the company's bankruptcy during that period were unfounded.

The lawsuit also claims that Zhao caused panic by tweeting in November 2022, leading to large withdrawals from FTX. Binance stated that these posts came immediately after CoinDesk published an exposé about FTX and that their content was not misleading.

Published: May 20, 2025 11:19