Binance Urges Court to Dismiss $1.76 Billion FTX Lawsuit

• Binance urges U.S. court to dismiss FTX’s $1.76B lawsuit.

• Binance blames FTX’s collapse on internal fraud, not interference.

• FTX claims Binance deal and Zhao’s remarks worsened its downfall.

In a major development, Binance, one of the world’s largest cryptocurrency exchanges, has requested a U.S. court to dismiss a $1.76 billion lawsuit filed by the FTX estate. The bankruptcy case was filed in the Delaware Bankruptcy Court on May 16, 2025. Binance’s statement says the lawsuit has no legal grounds and is designed to blame FTX’s failure on others.

Binance Rejects Fraud Claims in FTX Lawsuit

According to Binance, the downfall of FTX was not attributable to outside interruption or pressure. It mainly points to errors inside the company and to fraud committed by FTX. Through the document, Binance law team pointed out that FTX’s fall was the result of one of the largest fraud incidents ever seen. They said that Sam Bankman-Fried, who once led FTX as its founder and CEO, is now behind bars for fraudulently taking money from investors, customers and lenders.

The lawsuit which began in November 2023, is trying to get back $1.76 billion in crypto assets. In July 2021, FTX needed the money from Binance to buy back a 20% stake in the business that it had previously sold in 2019. According to the FTX estate, the repurchase took place using customers’ money that had been misused, while FTX had no funds left by that time.

At the same time, Binance claims that these events unfolded differently. An allegation by the company is that FTX did not close down for 16 months after completing the 2021 transaction. For this reason, Binance believes that allegations that FTX was insolvent at that time are unjustified. Binance also declares that it did not know the funds came from customers who were allegedly robbed.

In addition, Binance’s legal officials affirm that no element of the deal was fraudulent for them. The firm claims that U.S. courts do not have control because the Binance groups concerned operate abroad. They also stress that none of the Binance executives took part in the contested transaction.

FTX Lawsuit Accuses Binance of Worsening Financial Troubles Deliberately

Meanwhile, FTX accuses Binance of heavily influencing its collapse. FTX believes that the buyback deal in 2021 and statements by Binance’s chief executive, Changpeng Zhao, made its financial situation worse. In November 2022, Zhao said that Binance would transfer its FTT holdings and this caused some users to panic.

On the other hand, Binance supports its remarks. The company claims Zhao only responded to issues raised by the CoinDesk article about the state of FTX’s financial records. Binance insists that selling FTT was motivated by managing risks rather than any ill intentions.

All in all, Binance opposes all accusations made in the $1.76 billion lawsuit, saying internal fraud and not external actions are to blame for FTX’s collapse. Binance filed this motion to clear its name for the sake of its reputation. Further, it seeks to avoid unjust blame for one of the crypto industry’s biggest collapses. The outcome of the case will decide who is responsible for the crypto industry’s biggest failure.

 

The post Binance Urges Court to Dismiss $1.76 Billion FTX Lawsuit appeared first on Live .