Binance has just requested the Delaware bankruptcy court (U.S.) to dismiss the $1.76 billion lawsuit from FTX, asserting that the allegations are baseless and the court lacks jurisdiction, opening up a tense legal battle.


Origin and Reason for the Lawsuit

In November 2024, #FTX , currently in bankruptcy, filed a lawsuit against Binance Holdings Ltd. and former CEO Changpeng Zhao (CZ), demanding the return of $1.76 billion. FTX alleges that former CEO Sam Bankman-Fried (SBF) fraudulently transferred this amount, related to the share buyout in 2019 and 2021. According to FTX, 20% of the initial shares were sold to Binance, and the subsequent buyout involved a token basket (BNB, BUSD, FTT) with 60% ($1 billion) as customer deposits, leading to a financial crisis and collapse.


After six months of silence, Binance rebutted, claiming that the lawsuit is merely aimed at "blaming" the competitor to cover up SBF's misconduct, who is serving a 25-year prison sentence for fraud.


Binance's Argument

Binance argues that the lawsuit lacks legal grounds. They emphasize that FTX operated normally for 16 months after the transaction, with no evidence of illegal activities. Regarding the allegation that CZ caused market panic with a tweet in November 2022 (suggesting to sell FTT), #Binance rebutted: "The tweet was posted after the CoinDesk report exposed FTX's finances, which was not untrue." Additionally, Binance and the defendants are not U.S. residents and did not engage in direct transactions, so the Delaware court lacks jurisdiction.


Current Situation and Impact

The lawsuit is part of FTX's campaign to recover $11 billion to pay off debts, with a plan to distribute assets to creditors starting on 30/5/2025. If the court dismisses the case, Binance will be released from liability; if not, the case may extend through investigations and negotiations.


Conclusion: Who Will Win?

Binance firmly denies the $1.76 billion lawsuit from FTX, calling the allegations baseless and outside the jurisdiction of the Delaware court. This legal battle will not only determine financial liability but also affect the reputation of the two major exchanges. The upcoming result will be a significant turning point for the crypto industry.


Risk Warning: Investing in cryptocurrencies carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating. #anhbacong