{"id":129611,"date":"2025-05-20T11:15:33","date_gmt":"2025-05-20T11:15:33","guid":{"rendered":"http:\/\/cryptospotters.net\/?p=129611"},"modified":"2025-05-20T11:15:33","modified_gmt":"2025-05-20T11:15:33","slug":"binance-seeks-to-dismiss-1-76b-ftx-lawsuit-blames-sbf-for-collapse","status":"publish","type":"post","link":"http:\/\/cryptospotters.net\/?p=129611","title":{"rendered":"Binance seeks to dismiss $1.76B FTX lawsuit, blames SBF for collapse"},"content":{"rendered":"

Source: Cointelegraph.com NewsBinance has filed a motion to dismiss a $1.76 billion lawsuit brought by the FTX estate, accusing the defunct crypto exchange of trying to deflect blame for its own failure.
\nFiled on May 16 in the Delaware Bankruptcy Court, Binance\u2019s legal team called the suit \u201clegally deficient,\u201d stating that FTX\u2019s collapse was not triggered by market manipulation or hostile action but by internal misconduct.
\n\u201cPlaintiffs are pretending that FTX did not collapse as the result of one of the most massive corporate frauds in history,\u201d the filing said, pointing to Sam \u201cSBF\u201d Bankman-Fried\u2019s conviction on seven counts of fraud and conspiracy.
\nFTX\u2019s estate alleges that Binance received billions in crypto during a 2021 buyback deal, funded improperly with customer assets.
\nBinance rejects this claim, stating that \u201cFTX remained a going concern for 16 months\u201d after the share repurchase and that there was \u201cno plausible claim\u201d the exchange was insolvent at the time.
\nBinance filing to dimiss FTX\u2019s lawsuit against the exchange. Source: Law360newsRelated: Binance wants arbitration for all members of securities class suit
\nZhao\u2019s tweet and FTT crash
\nThe lawsuit also accuses former Binance CEO Changpeng Zhao of triggering a collapse through a tweet on Nov. 6, 2022 announcing the liquidation of FTT tokens.
\nIn response, Binance argued that Zhao\u2019s tweet was based on publicly known concerns. \u201cBinance\u2019s decision to liquidate its remaining FTT was, in fact, \u2018due to recent revelations\u2019\u2014in particular, the November 2, 2022 CoinDesk article\u201d that exposed Alameda Research\u2019s balance sheet.
\nThe company further defended Zhao\u2019s comment that Binance would aim to minimize market impact. \u201cThe Complaint contains no such facts\u201d to prove Binance had no intention of following through.
\nCZ announcing plans to liquidate FTT holdings in 2022. Source: CZIn challenging the court\u2019s jurisdiction, Binance said none of the foreign entities named \u201care incorporated in or maintain their principal place of business in the United States\u201d and thus fall outside the court\u2019s reach.
\nThe filing also criticizes the plaintiff\u2019s narrative as \u201ca grab bag of state law claims\u201d based on \u201cpure conjecture\u2014much of it sourced from a convicted fraudster\u2019s hindsight speculation.\u201d
\nBinance has asked the court to dismiss all claims with prejudice. The FTX estate has not yet filed its response.
\nRelated:\u00a0FTX EU creditors can now withdraw money from Backpack exchange
\nFTX to disburse $5 billion in second round of creditor repayments
\nFTX is set to begin its second round of repayments to creditors more than two years after filing for bankruptcy.
\nIn a May 15 notice, the FTX Recovery Trust announced that over $5 billion will be distributed starting May 30 through BitGo and Kraken, targeting parties in the second eligible group under the exchange\u2019s reorganization plan.
\nAccording to the plan, five creditor groups categorized as \u201cconvenience classes\u201d are expected to receive between 54% and 120% of their claims. In total, FTX may repay up to $16 billion, depending on the final number of valid claims.
\nMagazine:\u00a0Father-son team lists Africa\u2019s XRP Healthcare on Canadian stock exchangeRead More<\/a><\/p>","protected":false},"excerpt":{"rendered":"

Source: Cointelegraph.com NewsBinance has filed a motion to dismiss a $1.76 billion lawsuit brought by the FTX estate, accusing the defunct crypto exchange of trying to deflect blame for its… <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"_links":{"self":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129611"}],"collection":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=129611"}],"version-history":[{"count":0,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=\/wp\/v2\/posts\/129611\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=129611"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=129611"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptospotters.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=129611"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}