Binance Demands FTX Bankruptcy Accusations Against It

Cryptocurrency exchange Binance has formally filed a motion in the Delaware District Court to dismiss the FTX lawsuit. The largest exchange has called the claims against it “legally invalid” and denied any responsibility for FTX’s bankruptcy.

The lawsuit concerns a 2021 deal in which FTX acquired a portion of Binance for $1.76 billion in cryptocurrencies (BNB, BUSD, FTT). FTX managers claim that the deal was settled using clients’ money, which is why the deal should be declared invalid. In addition, the plaintiffs accuse Changpeng Zhao, the founder of Binance, of causing a massive outflow of money from FTX and its subsequent bankruptcy three years ago with his social media post.

In its motion, Binance put forward the following arguments:

• FTX continued to operate for over a year after the deal, meaning the collapse was not directly caused by it;
• Zhao's publications did not contain false information, but were expressions of the opinions and actions of the exchange based on available data;
• The exchange founder himself was not personally involved in the deal, and Binance's legal entities are registered outside the US, so the case should not be heard in a US court.

Earlier, the largest crypto exchange Binance conducted a large-scale survey among 30,000 traders from Asia to find out how users protect their digital assets.