Binance seeks to dismiss $1.76B FTX lawsuit, blames SBF for collapse

Quick Summary:

Filed on May 16 in the Delaware Bankruptcy Court, Binance’s legal team called the suit “legally deficient,” stating that FTX’s collapse was not triggered by market manipulation or hostile action but by internal misconduct.“Plaintiffs are pretending that FTX did not collapse as the result of one of the most massive corporate frauds in history,” the filing said, pointing to Sam “SBF” Bankman-Fried’s conviction on seven counts of fraud and conspiracy.

In response, Binance argued that Zhao’s tweet was based on publicly known concerns.“Binance’s decision to liquidate its remaining FTT was, in fact, ‘due to recent revelations ’— in particular, the Nov.2, 2022, CoinDesk article” that exposed Alameda Research’s balance sheet.

The filing also criticizes the plaintiff’s narrative as “a grab bag of state law claims” based on “pure conjecture — much of it sourced from a convicted fraudster’s hindsight speculation.”Binance has asked the court to dismiss all claims with prejudice.

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Article Details

Author / Journalist: Cointelegraph by Amin Haqshanas

Category: Crypto

Markets: United States

Topics: Filing Billion Collapse Dismiss Ftx’s Filed Estate Crypto Exchange Lawsuit Binance

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-20 @ 12:12:57 (13 hours ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 510 words

Reading Time: 3 minutes read

Sentences: 21 lines

Sentence Length: 25 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Coin Telegraph

News ID: 28873359

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Main Topics: Crypto

Official Website: cointelegraph.com

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