Binance Moves to Dismiss FTX’s $1.76B Clawback Suit, Citing Hong Kong Law and Sam Bankman-Fried’s 25-Year Sentence – Crypto News – Crypto News
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Binance Moves to Dismiss FTX's $1.76B Clawback Suit, Citing Hong Kong Law and Sam Bankman-Fried's 25-Year Sentence Binance Moves to Dismiss FTX's $1.76B Clawback Suit, Citing Hong Kong Law and Sam Bankman-Fried's 25-Year Sentence

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Binance Moves to Dismiss FTX’s $1.76B Clawback Suit, Citing Hong Kong Law and Sam Bankman-Fried’s 25-Year Sentence – Crypto News

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6 months ago

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Binance has filed a motion in a Delaware bankruptcy court to dismiss a $1.76 billion clawback lawsuit brought by the FTX estate. The lawsuit seeks to recover funds transferred to Binance in July 2021 as part of a share repurchase agreement, following FTX’s earlier sale of a 20% equity stake to Binance in 2019, which was later bought back using BUSD, BNB, and FTT tokens.

FTX alleges that it was insolvent at the time of the 2021 transaction and that misappropriated customer funds secretly financed the repurchase. The FTX estate also claims that Binance and its former CEO, Changpeng Zhao, contributed to FTX’s collapse, including through public statements made on social media in November 2022.

Binance contends that the lawsuit is legally deficient, speculative, and unsupported by facts, describing FTX’s collapse as ‘one of the most massive corporate frauds in history’ by its own leadership. The filing notes that former FTX CEO Sam Bankman-Fried is serving a 25-year prison sentence for fraud. Binance also maintains that the U.S. court lacks jurisdiction over its foreign entities, that the disputed agreements were governed by Hong Kong law, and that FTX ‘remained a going concern for 16 months’ after the transaction.

The motion to dismiss further asserts that Zhao’s tweets regarding Binance’s liquidation of FTT holdings were accurate, not false or misleading, and that Binance’s actions were motivated by market risk rather than intent to harm FTX. The complaint was filed in November last year as part of FTX’s ongoing attempts to recover assets after its collapse.

This is an AI-generated article powered by DeepNewz, curated by The Defiant. For more information, including article sources, visit DeepNewz.

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