Binance is seeking to dismiss a $1.76 billion lawsuit filed by the FTX estate, claiming FTX is wrongly blaming competitors for its own collapse. Binance argues the lawsuit is legally weak and that FTX’s downfall stemmed from internal fraud, not actions by Binance or its former CEO, Changpeng Zhao.
The lawsuit centers on a 2021 share buyback, where FTX paid Binance using crypto assets. FTX alleges it was insolvent at the time and used customer funds. Binance denies this and says FTX remained operational for over a year afterward.
Binance also disputes claims that Zhao triggered FTX’s collapse with a 2022 tweet, saying the statement followed media revelations and was truthful. Additionally, Binance argues the case should be dismissed due to a lack of U.S. jurisdiction.
This is one of several lawsuits by the FTX recovery team to reclaim assets after the exchange’s massive bankruptcy.
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