The giant cryptocurrency exchange platform "Binance" has filed a formal request with the U.S. Bankruptcy Court in "Delaware" to dismiss the lawsuit filed by the bankrupt platform "FTX", which seeks to recover $1.76 billion. Binance's request states that the lawsuit lacks legal basis and facts, blaming the collapse on the self-inflicted mistakes and fraudulent actions of "FTX", especially with the conviction of its founder "Sam Bankman-Fried" (SBF) for fraud and his 25-year prison sentence.
Details of the dispute:
- Origin of the lawsuit: "FTX" claims to recover amounts it transferred to "Binance" in exchange for repurchasing its shares in 2021, alleging the use of customer funds without permission during its insolvency.
- Binance's response: It asserts that the agreement was made 16 months before "FTX"'s bankruptcy and that the collapse resulted from the latter's mismanagement, questioning the U.S. court's jurisdiction over foreign assets.
- Background of the deal: "Binance" purchased 20% of "FTX" shares in 2019, then "FTX" repurchased them in 2021 using "BNB", "BUSD", and "FTT" currencies.
It is worth mentioning that the case draws attention for its complex interconnections and significant implications for the cryptocurrency sector, amidst ongoing international legal follow-ups.