Binance has filed a motion to dismiss FTX’s $1.76 billion clawback lawsuit, arguing that the case is legally flawed and unsupported by facts. The lawsuit claims that FTX transferred a substantial amount of cryptocurrency to Binance in July 2021 under questionable circumstances. Binance contends that FTX’s collapse was due to massive fraud by its leadership, specifically founder Sam Bankman-Fried, who is currently serving a 25-year prison sentence for fraud. They state that FTX’s claims of insolvency at the time of the 2021 deal are implausible, as the firm was solvent for over a year afterward. Binance also defends its actions against allegations that its tweets triggered customer withdrawals, stating the tweets followed a pertinent report exposing FTX. Moreover, Binance highlights that it and its leadership are not subject to U.S. jurisdiction, as they operate internationally. The FTX estate's clawback efforts follow one of the largest bankruptcies in crypto history, affecting billions in customer funds.

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