The world’s largest cryptocurrency exchange, Binance, was making headlines over legal issues. The firm recently filed to dismiss FTX’s lawsuit. The $1.76 billion lawsuit was filed back in November 2024 against Binance. This suit was about the cryptocurrency used to settle an equity agreement between the companies in 2021. This was just before FTX’s demise.
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Why Is Binance Pushing To Dismiss The Lawsuit?
Binance is currently fighting back against the lawsuit. The exchange says FTX has no legitimate legal ground. The exchange notes that FTX is attempting to place blame for its failure on competitors. This is rather than own up to the behavior of FTX founder Sam Bankman-Fried (SBF). Binance’s attorneys said SBF was at the center of what’s been described as one of the greatest corporate frauds in history. They even reminded the court that he’s already received 25 years in prison for his wrongdoings. They wrote in their filing:
“Plaintiffs are pretending that FTX did not collapse as the result of one of the most massive corporate frauds in history.”
Binance further argued that FTX’s downfall wasn’t triggered by outside tweets or fund transfers, but by internal fraud. The exchange emphasized that the real cause of FTX’s insolvency lies within its operations, not the actions of its competitors. The exchange also says that its global entities operate outside U.S. jurisdiction. As a result, the lawsuit shouldn’t even be heard in a U.S. court.
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A Look Back At 2019
In 2019, FTX sold Binance a 20% ownership share, which Binance then repurchased using a combination of FTT, BNB, and BUSD tokens. The FTX estate said that the buyback was funded by stolen client funds. They said that the exchange was insolvent at the time of the 2021 transaction.
Binance notes that “The complaint contains no facts to suggest that the tweets were false.” The exchange added that FTX remained operational for over 16 months after the 2021 share-crypto transfer. Binance attorneys also objected to allegations of personal jurisdiction. They argued that Zhao had no direct involvement in the share transaction, and Binance is headquartered outside the US.
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