Binance Seeks Dismissal of FTX’s $1.76B Clawback Suit, Calling It ‘Legally Deficient’

Binance has asked a Delaware bankruptcy judge to toss out a $1.76 billion lawsuit brought by the FTX estate, saying that the defunct crypto platform is attempting to “shift the blame” for its collapse away from founder Sam Bankman-Fried and onto his competitors.Binance Holdings Ltd. said the complaint is “legally deficient” and cannot plausibly link Binance or its former CEO Changpeng Zhao to FTX’s downfall, in a “Plaintiffs are pretending that FTX did not collapse as the result of one of the most massive corporate frauds in history,” the filing said, noting that former CEO Sam Bankman-Fried is now serving a The lawsuit, filed last November, FTX had previously sold Binance a 20% equity stake in 2019, which it later bought back using a mix of BNB, BUSD, and FTT tokens.The FTX estate claims the exchange was insolvent at the time of the 2021 deal, and that misappropriated customer funds secretly financed the repurchase. But Binance argues in the motion that FTX “remained a going concern for 16 months” afterward, making any claim of prior insolvency implausible.The lawsuit also alleged that Zhao “maliciously” used Twitter to trigger a wave of customer withdrawals, “The November 2022 tweets were posted in the days following a bombshell report by The exchange also said the case should be dismissed for lack of personal jurisdiction, saying that none of the corporate defendants are based in the U.S. and did not directly engage in the transfers.The FTX recovery trust has filed numerous clawback suits to recover assets following the DecryptEdited by