Binance has filed a request with the Delaware bankruptcy court to dismiss a lawsuit brought by the new management of the bankrupt cryptocurrency exchange FTX, seeking to recover $1.76 billion related to a share repurchase deal from 2021, and attempted to blame its collapse on the criminal misconduct of its founder Sam Bankman-Fried.

Binance's legal team described the lawsuit as "legally flawed," adding that FTX's bankruptcy was the result of internal failures and not any wrongdoing by Binance.

According to the filing, the lawsuit "takes almost ridiculous measures to downplay" the role of Sam Bankman-Fried, who was convicted in 2023 on 7 charges related to fraud, conspiracy, and money laundering, and is now serving a 25-year federal prison sentence.

The plaintiffs are suing Binance in connection with a deal made in July 2021, where the former sold its stake in FTX to the company, in return receiving a large amount of cryptocurrency assets, which FTX claims were illegally withdrawn from customer deposits.

While it was noted that this deal was executed at a time when the exchange was already insolvent, making it a fraudulent transfer under U.S. bankruptcy law.

Binance refutes these allegations, pointing out that FTX was operational for 16 months after the deal, insisting that there was no bankruptcy case at that time.