Binance requests to dismiss the $1.76 billion lawsuit against FTX and blames SBF for the collapse

Binance has asked a U.S. court to dismiss the $1.76 billion lawsuit filed by FTX, claiming that the suit erroneously blames Binance and its former CEO for a collapse caused by internal fraud.



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Binance has filed a motion to dismiss a $1.76 billion lawsuit filed by the estate of FTX, accusing the defunct crypto exchange of trying to deflect blame for its own failure.

Filed on May 16 in the Delaware Bankruptcy Court, Binance's legal team called the lawsuit "legally deficient," stating that the collapse of FTX was not caused by market manipulation or hostile action, but by internal misconduct.

"The plaintiffs want us to believe that FTX did not collapse as a result of one of the largest corporate frauds in history," the filing states, pointing to Sam “SBF” Bankman-Fried's conviction on seven counts of fraud and conspiracy.

The estate of FTX alleges that Binance received billions in cryptocurrencies during a buyback agreement in 2021, improperly funded with customer assets.

Binance rejects this allegation, stating that "FTX remained an operating company for 16 months" after the stock buyback and that there was "no plausible claim" that the exchange was insolvent at that time.