2025-05-21
On May 16, 2025, in the Delaware
Bankruptcy Court. Binance has filed a motion to dismiss a $1.76 billion lawsuit
brought by the FTX estate, arguing that the claims are legally deficient and an
attempt to deflect blame from FTX's internal misconduct.
The lawsuit centers on a 2021 share
repurchase deal in which FTX bought back Binance's 20% stake, allegedly using
misappropriated customer funds.
FTX’s estate alleges that Binance
received billions of dollars in crypto during a 2021 FTX’s buyback deal, funded
improperly with customer funds.
Binance contends that FTX remained
operational for 16 months after the transaction, undermining claims of prior
insolvency.
Additionally, the lawsuit accuses
former Binance CEO Changpeng Zhao of contributing to FTX's collapse through a
tweet on Nov. 6, 2022, announcing the liquidation of FTT tokens.
Binance defends this action as a
response to public information about FTX's financial instability, not as market
manipulation.
Binance also challenges the court's
jurisdiction, noting that the entities involved are not based in the U.S., and
asserts that the agreements in question are governed by Hong Kong law.
FTX, under new leadership, seeks to
recover funds for creditors, alleging that the 2021 transaction was fraudulent
due to FTX's insolvency at the time. Binance maintains that the lawsuit lacks
merit and plans to vigorously defend itself.
