Binance and CZ Reject $1.76 Billion Demand Against FTX

Binance And Cz Reject $1.76 Billion Demand Against Ftx Bankruptcy Team!

20 May 2025 at 20: 45

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Binance and former CEO Changpeng Zhao have filed a motion to dismiss FTX's $1,76 billion lawsuit.

The crypto industry is still reeling from the fallout of FTX’s collapse. In a court document dated May 16, Binance and related entities have sought to have the lawsuit filed against them by FTX’s bankruptcy attorneys dropped. Citing a lack of jurisdiction, Binance argues that FTX is solely responsible for its demise.

The lawsuit, initiated by the FTX Recovery Trust, seeks to recover $1,76 billion in assets paid by FTX in July 2021 to buy back shares from Binance. At the time, Binance was one of the largest investors in FTX, but later decided to divest from the exchange. In its filing, Binance argues that these funds should be protected under the safe harbor clause under bankruptcy laws, as the transaction involved a securities contract.

The FTX Recovery Trust also alleges that then-Binance CEO Changpeng Zhao contributed to a bank run on FTX through social media posts, which they describe as part of a “campaign to destroy FTX.” In response, Binance states that the posts were truthful and that any suggestion of foul play was speculative.

“Of course, the only substantiation for this theory is pure conjecture – much of it derived from the hindsight speculation of a convicted fraudster,” according to Binance’s court filing regarding Changpeng Zhao’s alleged attempt to destroy FTX.

Binance Points to Lack of Jurisdiction, Blames FTX

Binance’s main argument is based on the court’s lack of jurisdiction. The exchange points out that all three FTX entities involved are located outside of the US, specifically in the Cayman Islands and Ireland. Furthermore, Binance argues that these entities were not parties to the stock repurchase agreements.

The filing also points to FTX founder Sam Bankman-Fried as the source of blame for its demise. Binance notes that the lawsuit itself alleges “widespread wrongdoing,” “ongoing fraud,” and misrepresentation by FTX’s leadership.

Frequently Asked Questions

How much is the FTX Recovery Trust trying to recover?
The FTX Recovery Trust is seeking to recover $1,76 billion in assets.

Where are the FTX entities located?
The FTX entities involved are located in the Cayman Islands and Ireland.

Who is accusing Binance of causing the demise of FTX?
The FTX Recovery Trust accuses Binance and former CEO Changpeng Zhao of having a role in the events leading to the collapse of FTX.

The developments in this lawsuit are just the tip of the iceberg in the world of cryptocurrency. It is a fascinating time for the industry, one that invites reflection. What will the future of crypto look like as these types of legal disputes unfold? Stay involved and make your voice heard in this uncertain, yet exciting world!

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