TechFlow news, May 20 — According to Decrypt, Binance has filed a motion with a Delaware bankruptcy judge seeking to dismiss FTX's $1.76 billion clawback lawsuit. Binance argued the lawsuit lacks "legal basis" and unreasonably attempts to link FTX's collapse to Binance or its former CEO Changpeng Zhao.
In the filing, Binance emphasized that FTX's collapse was actually the result of "one of the largest corporate frauds in history," not due to any actions by Binance. Former CEO Sam Bankman-Fried is currently serving a 25-year prison sentence for defrauding customers, investors, and lenders.
FTX's lawsuit aims to recover approximately $1.76 billion in cryptocurrency transferred to Binance in July 2021 as part of a share buyback agreement. FTX claims it was already insolvent at the time and that the buyback funds came from misappropriated customer assets.
Binance countered that FTX "continued operating for 16 months" after the transaction, undermining claims of prior insolvency.
