World Crypto Global
- Written by: Jared Kirui
- Tue, 20 May 2025
- Israel
Binance has asked a Delaware court to throw out a$1.76 billion clawback lawsuit filed by the FTX estate, arguing that thenow-bankrupt crypto exchange is targeting the wrong party. According to the court documents, Binance says FTXs collapse stems from internal fraud,not any action it or former CEO Changpeng Zhao took, and that the case fails tomeet basic legal standards.Binance Rejects Claims, Deflects BlameIn a motion filed last week, Binance described FTXscase as legally deficient and lacking any plausible basis. The companypointed to the conviction and 25-year sentence of FTX founder SamBankman-Fried, calling the company's downfall one of the most massive corporatefrauds in history.Binance has asked a Delaware court to dismiss FTXs $1.76bn asset recovery suit, calling it legally untenable, denying involvement in FTXs 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, 2025The FTX estate argues the firm was already insolventat the time and financed the deal using misappropriated customer funds. Binancedisputes the charge. It claims FTX continued to operate for over a yearfollowing the deal, undermining any assertion of prior insolvency. The exchange also said the lawsuit failed to show thatBinance had any knowledge of the source of funds used in the transaction.Read more: XRP Futures Debut on CME With $19M Volume on First Day, Driving ETF SpeculationFTX also accused Zhao of using Twitter to undermineconfidence in the company, pointing to a November 2022 post in which he saidBinance would sell its FTT holdings due to recent revelations. The suitsuggests that the tweet sparked a surge in withdrawals and a liquidity crisis atFTX.However, Binance argues that the tweet responded to publicreporting, not private knowledge. The November 2022 tweets were posted in thedays following a report by CoinDesk, Binance said, adding that thecomplaint contains no facts indicating the posts were false or misleading.Jurisdiction and Legal Boundaries DisputedBinance further argues that the court lacksjurisdiction over its foreign corporate entities. It said none of thedefendants are based in the U.S. or directly conducted the transfers inquestion.The clawback suit is one of many filed by the FTXrecovery trust to recoup assets following the firms high-profilecollapse. The bankruptcy left billions in customer funds missing and sentshockwaves through the crypto industry.This article was written by Jared Kirui at www.financemagnates.com.
