The lawsuit, initiated by the FTX Recovery Trust, aims to recover $1.76 billion in assets FTX paid in July 2021 to repurchase equity from Binance. At the time, Binance was one of FTX\u2019s largest investors but later chose to divest from the exchange. In its filing, Binance argued that these funds should be protected in bankruptcy under the \u201csafe harbor\u201d clause, as the transaction involved a securities contract.<\/p>\n
The FTX Recovery Trust also alleged that then-Binance CEO Changpeng Zhao contributed to a bank run on FTX through social media posts, which it described as part of a \u201ccampaign to destroy FTX.\u201d In response, Binance said the posts were truthful and claimed any suggestion of malicious intent was speculative.<\/p>\n
\n\u201cOf course, Plaintiffs\u2019 only support for this theory is pure conjecture\u2014much of it sourced from a convicted fraudster\u2019s hindsight speculation,\u201d Binance\u2019s court filing about Changpeng Zhao\u2019s alleged attempt to destroy FTX. <\/p>\n<\/blockquote>\n
<\/p>\n
Binance cites lack of jurisdiction, blames FTX for the collapse<\/h2>\n
Binance\u2019s primary argument rests on the court\u2019s lack of jurisdiction. The exchange noted that all three FTX entities involved are based outside the U.S., specifically in the Cayman Islands and Ireland. Furthermore, Binance contends that these entities were not parties to the repurchase agreements in question.<\/p>\n
The filing also asserts that the responsibility for FTX\u2019s downfall lies with its founder, Sam Bankman-Fried. Binance pointed out that the lawsuit itself highlights \u201cpervasive malfeasance,\u201d \u201congoing fraud,\u201d and misrepresentation by FTX leadership.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
Binance and its former CEO, Changpeng Zhao, filed a motion to dismiss FTX\u2019s lawsuit worth $1.76 billion. The crypto industry continues to feel the effects of the FTX collapse. In…<\/p>\n","protected":false},"author":1,"featured_media":165,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-164","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/164","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=164"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/164\/revisions"}],"predecessor-version":[{"id":166,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/164\/revisions\/166"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/165"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=164"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=164"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=164"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}