Binance has filed a motion in Delaware Bankruptcy Court to dismiss a $1.76 billion lawsuit brought by the FTX estate, arguing that the suit is “legally deficient” and that FTX’s collapse was due to internal misconduct, not actions by Binance or its former CEO, Changpeng Zhao.
The lawsuit centers on a July 2021 transaction in which FTX repurchased a 20% equity stake from Binance for $1.76 billion, paid in a mix of BNB, BUSD, and FTT tokens. FTX alleges that the repurchase was improperly funded using customer assets at a time when the exchange was already insolvent.
In its motion, Binance contends that FTX remained operational for 16 months after the buyback, suggesting that the transaction did not precipitate FTX’s collapse. The filing also challenges the court’s jurisdiction, noting that the entities involved are not incorporated in the United States.
The FTX estate has not yet filed a response to Binance’s motion
