Binance Moves to Dismiss FTX’s $1.76 Billion Lawsuit
Binance, one of the world’s largest cryptocurrency exchanges, has filed a motion to dismiss FTX’s $1.76 billion lawsuit, arguing that the case lacks jurisdiction and is based on unsupported allegations. This move comes after FTX attempted to recover funds and blamed Binance and its former CEO, Changpeng Zhao, for contributing to its collapse.
In its filing, Binance argued that the US court does not have jurisdiction over the foreign entities named in the case. The exchange pointed out that none of the defendants reside in the US and that the disputed agreements are governed by Hong Kong law. Binance also emphasized that its entities were not party to the original share purchase agreements, further weakening FTX’s jurisdictional claims.
Binance also refuted FTX’s insolvency argument, stating that the claim relies on unproven assumptions. According to Binance, FTX was not demonstrably insolvent at the time of the disputed transactions in July 2021. The exchange also addressed claims that Changpeng Zhao sparked a bank run through social media, calling those accusations exaggerated. Binance maintained that Zhao’s tweets were accurate and did not mislead the public.
The filing also highlighted that Binance’s decision to liquidate its FTT holdings in 2022 was driven by market risk, not by an intent to harm FTX. The exchange stated that it was motivated to preserve its own business amidst the uncertainty caused by the unraveling of FTX’s “massive fraud.”
Overall, Binance’s motion to dismiss FTX’s lawsuit is based on the lack of jurisdiction, unsupported claims, and allegations that the exchange was not involved in the events leading to FTX’s collapse. The legal battle between the two crypto giants continues, with Binance maintaining its stance against the allegations brought forth by FTX.
For more updates on this ongoing legal dispute, stay tuned for further developments in the cryptocurrency industry.