The post Crucial Move To Dismiss FTX’s $1.76B Lawsuit appeared on BitcoinEthereumNews.com.

The ongoing legal saga between two crypto giants, Binance and FTX, has taken a significant turn. In a move that underscores the bitter rivalry and complex aftermath of FTX’s dramatic collapse, Binance has formally requested a Delaware bankruptcy judge to dismiss the hefty $1.76 billion clawback lawsuit filed by the FTX estate. What is the Core of the FTX Lawsuit Against Binance? The lawsuit, initiated by FTX’s new leadership under John J. Ray III, aims to recover funds that FTX alleges were improperly transferred to Binance prior to its November 2022 bankruptcy filing. The core claim revolves around transactions and withdrawals that FTX deems preferential or fraudulent, arguing that Binance received an unfair advantage or knowingly participated in actions that harmed other creditors. The $1.76 billion figure represents various transactions, including: Withdrawals made by Binance from FTX.com. The sale of FTX’s native token, FTT, by Binance. Other alleged transfers or benefits received by Binance. FTX’s estate is tasked with maximizing recovery for the millions of users and creditors who lost funds when the exchange imploded. Clawback lawsuits are a common tool in bankruptcy proceedings to retrieve assets transferred shortly before a filing, under the premise that these transfers might have unfairly favored certain parties over others. Binance’s Stance: Why They Seek Dismissal Binance is not taking these accusations lightly. Their legal team has presented a robust argument to the court, asserting that the FTX lawsuit is fundamentally flawed and lacks the necessary legal and factual basis to proceed. Their primary contentions, as reported by Decrypt and legal filings, include: 1. Internal Fraud, Not Binance’s Actions: Binance vehemently argues that the root cause of FTX’s demise was not any action taken by Binance, but rather the extensive internal fraud and mismanagement orchestrated by FTX’s former leadership, particularly Sam Bankman-Fried and his…

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Filed under: News - @ May 20, 2025 9:24 pm