Binance Seeks Dismissal of FTX’s $1.76B Clawback Suit, Calling It ‘Legally Deficient’
Binance has requested a Delaware bankruptcy judge to dismiss a $1.76 billion lawsuit from the FTX estate, arguing that FTX is attempting to shift blame for its collapse from founder Sam Bankman-Fried to competitors. Binance claims the lawsuit is "legally deficient" and fails to connect Binance or its former CEO Changpeng Zhao to FTX's downfall. The lawsuit seeks to recover funds FTX transferred to Binance in 2021 as part of a share repurchase agreement. Binance contends that FTX was solvent for 16 months after the deal, challenging claims of prior insolvency. The lawsuit also accuses Zhao of inciting customer withdrawals through Twitter, which Binance defends as factual. Additionally, Binance argues that the case should be dismissed due to lack of personal jurisdiction, as the corporate defendants are not based in the U.S. The FTX recovery trust has initiated multiple clawback suits following the platform's collapse.
