On May 20, according to Decrypt, Binance claimed that FTX's lawsuit has no legal basis and attributed FTX's collapse to "one of the largest corporate frauds in history".
Binance has requested a Delaware bankruptcy judge to dismiss FTX's $1.76 billion recovery lawsuit, arguing that the lawsuit is legally flawed and lacks factual support.
The trading platform argued that FTX's downfall was caused by a large-scale fraud meticulously planned by its top executives, and not by any actions of Binance. Binance also pointed out that the court has no jurisdiction over its overseas entities, and that its tweets in 2022 were neither false nor misleading.
The lawsuit was initiated by FTX's bankruptcy estate management in November last year, attempting to recover approximately $1.76 billion in crypto assets transferred to Binance under a share repurchase agreement in July 2021. Binance Holdings Limited stated in a motion to dismiss filed last Friday that the lawsuit is "legally unfounded" and cannot reasonably link Binance or its former CEO CZ to FTX's collapse.
"The plaintiffs pretend that FTX's collapse was not the result of one of the most severe corporate frauds in history," Binance noted in the document, emphasizing that FTX's former CEO SBF has been sentenced to 25 years in prison for defrauding customers, investors, and lenders. Binance believes that FTX's move is an attempt to shift the responsibility for its collapse from SBF to its competitors.
