Binance Strongly Resists the $1.76 Billion Lawsuit from FTX
The cryptocurrency market is never short of turbulence. Binance is currently facing a $1.76 billion lawsuit from FTX, arguing that the lawsuit contains many legal and factual errors. Binance argues that FTX is merely trying to shift blame, and they do not accept this.
FTX Wants Billions, Binance Says Not So Easy
The origin of the lawsuit began from a 2021 agreement, when FTX bought 20% of Binance's shares for approximately $1.76 billion using BNB, BUSD, and FTT Tokens. FTX alleges that they had lost solvency at that time and used customer funds for the repurchase.
However, Binance's lawyers argue that FTX continued normal business for over a year after this agreement, proving the company was not in crisis at that time. They claim FTX is trying to change the narrative and ignore the collapse due to "one of the largest frauds in history."
Reaction to CZ's Tweet
FTX also criticized a tweet from former Binance CEO Changpeng Zhao, announcing Binance's liquidation of remaining FTT. According to FTX, this post triggered a wave of customer withdrawals and caused the platform's collapse. Binance responded that the tweet was based on public information and had no intention of causing harm.
Legal Issues and Potential Lawsuit Dismissal
Binance argues that the lawsuit should not be tried in a US court, as their organizations are not within US legal jurisdiction and do not directly manage transactions. They also cite shield laws and claim the lawsuit does not belong in bankruptcy court.
Binance wants the lawsuit to be completely dismissed, while FTX continues to attempt recovering billions in assets and prepares to repay $5 billion to creditors in the second round on May 30th. Nevertheless, this $1.76 billion battle is far from over.
