Binance Holdings Ltd. has formally requested that a Delaware bankruptcy court dismiss the lawsuit filed by the FTX estate, which seeks to recover approximately $1.76 billion. In its motion, Binance stated that the claims are legally insufficient and unsupported by factual evidence.

According to Binance, the collapse of FTX was not caused by any actions of Binance, but was instead the result of internal mismanagement and fraud within FTX itself.

“Plaintiffs ignore the fact that FTX’s downfall stemmed from one of the largest corporate frauds in history,” the filing states. Former FTX CEO Sam Bankman-Fried is currently serving a 25-year sentence for defrauding customers, investors, and creditors.

Binance also argues that there is no credible basis to link its executives, past or present, to the financial failure of FTX.

⚖️ Binance: Repurchase Was Lawful, and FTX Remained Operational

The lawsuit seeks to recover funds tied to a 2021 transaction in which Binance sold back its minority equity stake in FTX. Binance notes that this was a standard equity repurchase, and that FTX continued to operate normally for another 16 months after the transaction.

Binance further argues that there is no evidence that FTX was insolvent at the time, or that the repurchase was funded using misappropriated customer funds.

🧾 Social Media & Jurisdictional Claims

The FTX estate also references a tweet by Binance in November 2022, announcing the decision to liquidate its FTT holdings. In its defense, Binance explains that the tweet responded to publicly available information and contained no false or misleading statements.

Moreover, Binance asserts that the Delaware court lacks personal jurisdiction over its foreign affiliates, which did not directly participate in the transactions in question.

🧩 Context: Ongoing Asset Recovery Efforts by FTX Estate

The FTX estate is actively pursuing multiple legal actions as part of its efforts to recover assets following one of the largest bankruptcies in crypto history. In this context, Binance reaffirms its commitment to transparency, legal compliance, and user protection.


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