Binance Responds to FTX’s $17.6 Billion Lawsuit, Calling it Legally Deficient and an Attempt to Shift Blame

In a recent development reported by Decrypt on May 20th, Binance has firmly classified the ongoing lawsuit filed by FTX as legally unfounded. The legal contention revolves around allegations that Binance played a significant role in the collapse of FTX, which Binance claims is one of the most egregious corporate frauds witnessed in modern finance. The exchange has urged a judge in Delaware to dismiss the suit, valuing around $17.6 billion, on the grounds that it is void of factual substantiation and legal merit.

Binance has articulated that the framework of FTX’s downfall was orchestrated internally by its management rather than through Binance’s involvement. The platform emphasized that jurisdiction issues further complicate the case, noting that claims related to its foreign entities should be dismissed. Additionally, Binance has defended its public communications from 2022, asserting that they were accurate and devoid of misleading information. As FTX endeavors to recover assets transferred to Binance under a share repurchase agreement, the exchange staunchly maintains that FTX’s leadership is responsible for its own failures.