Binance, the world's largest cryptocurrency exchange, has filed a motion requesting that the court dismiss FTX's $1.76 billion lawsuit.
Details of FTX’s Lawsuit
FTX filed the lawsuit in November of last year, seeking to recover $1.76 billion transferred to Binance as part of a share buyback agreement in July 2021. In 2019, FTX sold 20% of its shares to Binance and later repurchased the remaining 20% using BNB, BUSD, and FTT tokens.
Binance's Arguments
In its motion to dismiss, Binance argues that the lawsuit lacks any legal and factual basis and asserts that it is not responsible for FTX’s collapse. Binance's lawyers highlighted that FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for his criminal actions and also claimed that the court lacks jurisdiction over foreign assets.
Background and Implications
FTX insists that at the time of the fund transfers to Binance, it was insolvent and that customer funds were used without authorization. Conversely, Binance claims that FTX operated for another 16 months after the agreement, disputing any assertions that the company went bankrupt during that timeframe.
The case between Binance and FTX raises significant questions regarding legal accountability in the cryptocurrency sector and the consequences of managerial mistakes and fraud.
