Binance has filed a movement in a Delaware chapter court docket to dismiss a $1.76 billion clawback lawsuit introduced by the FTX property. The lawsuit seeks to recuperate funds transferred to Binance in July 2021 as a part of a share repurchase settlement, following FTX’s earlier sale of a 20% fairness stake to Binance in 2019, which was later purchased again utilizing BUSD, BNB, and FTT tokens.
FTX alleges that it was bancrupt on the time of the 2021 transaction and that misappropriated buyer funds secretly financed the repurchase. The FTX property additionally claims that Binance and its former CEO, Changpeng Zhao, contributed to FTX’s collapse, together with via public statements made on social media in November 2022.
Binance contends that the lawsuit is legally poor, speculative, and unsupported by details, describing FTX’s collapse as ‘one of the vital huge company frauds in historical past’ by its personal management. The submitting notes that former FTX CEO Sam Bankman-Fried is serving a 25-year jail sentence for fraud. Binance additionally maintains that the U.S. court docket lacks jurisdiction over its overseas entities, that the disputed agreements have been ruled by Hong Kong regulation, and that FTX ‘remained a going concern for 16 months’ after the transaction.
The movement to dismiss additional asserts that Zhao’s tweets concerning Binance’s liquidation of FTT holdings have been correct, not false or deceptive, and that Binance’s actions have been motivated by market danger quite than intent to hurt FTX. The grievance was filed in November final yr as a part of FTX’s ongoing makes an attempt to recuperate property after its collapse.
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