Binance moves to quash FTX’s $1.8 billion lawsuit, dismisses allegations as speculative

Binance has asked a US tribunal to disregard FTX’s $1.76 cardinal lawsuit, arguing that the lawsuit lacks jurisdiction and relies connected unsupported allegations.

The motion follows FTX’s attempt to claw backmost funds and blasted Binance and its erstwhile CEO, Changpeng Zhao, for contributing to its collapse.

However, Binance has rejected these claims, calling them speculative and legally flawed.

Binance counters FTX

In its filing, Binance argued that the US tribunal lacks authorization implicit the overseas entities named successful the case.

The speech pointed retired that nary of the defendants resided successful the US and that the disputed agreements were governed by Hong Kong law.

Binance besides emphasized that its entities were not enactment to the archetypal stock acquisition agreements, further weakening FTX’s jurisdictional claims.

The steadfast stated:

“Plaintiffs bash not sufficiently allege that immoderate of the BHL Defendants had a tenable anticipation of being haled into American courts successful transportation with immoderate of the alleged events.”

The speech besides aimed astatine FTX’s insolvency argument, asserting that the assertion relies connected unproven assumptions.

According to Binance, FTX was not demonstrably insolvent astatine the clip of the disputed July 2021 transactions, and adjacent if it were, the ineligible mentation collapses nether scrutiny.

Binance wrote:

“If FTX genuinely were insolvent arsenic of July 2021, past determination was nary worth near to beryllium ‘destroyed’ successful November 2022. But adjacent much fundamentally, successful advancing this theory, Plaintiffs are pretending that FTX did not illness arsenic the effect of 1 of the astir monolithic firm frauds successful history.”

Zhao’s tweets and the alleged slope run

The filing besides addressed claims that Changpeng Zhao sparked a slope tally done societal media, describing those accusations arsenic exaggerated. Binance maintained that Zhao’s posts were close and did not mislead the public.

Binance said:

“Plaintiffs travel obscurity adjacent to showing however the alleged Tweets of a overseas CEO and a overseas trading level concerning different overseas trading level tin beryllium said to person targeted the US specified that the BHL Defendants should person anticipated defending litigation here.”

Binance besides pointed retired that its determination to liquidate its FTT holdings successful 2022 was driven by marketplace risk, not by an intent to harm FTX.

The speech further argued:

“Binance itself was taxable to important uncertainty that the unraveling of FTX’s monolithic fraud was creating successful the marketplace. Binance was plainly motivated to sphere its ain concern and marque wide the measures it was taking to bash so.”

The station Binance moves to quash FTX’s $1.8 cardinal lawsuit, dismisses allegations arsenic speculative appeared archetypal connected CryptoSlate.