Binance Seeks Dismissal of FTX’s $1.76 Billion Lawsuit

Cryptocurrency exchange Binance has filed a motion to dismiss a $1.76 billion lawsuit from FTX. The company’s lawyers described the claims as “legally deficient” and demanded the case be dropped.

FTX filed the lawsuit last November, accusing Binance of intentionally withdrawing funds through a 2021 deal. At that time, the former bought back 20% of its shares from the largest exchange for crypto assets, including BNB, BUSD, and FTT.

Following FTX’s collapse in 2022, the administration claimed the deal was financed with stolen customer funds, and public statements by Binance CEO Changpeng Zhao triggered the bankruptcy.

In court documents, the exchange’s team rejected the allegations, calling them an attempt to shift responsibility for FTX’s collapse onto third parties. The company noted that the founder of the failed exchange, Sam Bankman-Fried, has already been sentenced to 25 years for fraud, and the platform continued to operate for 16 months after the 2021 deal.

Binance’s lawyers also emphasized that the company is not subject to U.S. jurisdiction, and Zhao was not personally involved in the deal.

FTX is in the process of contacting issuers regarding its assets and intends to file additional lawsuits against parties that do not respond to requests.

Back in April, FTX liquidators disqualified at least 392,000 compensation claims.