Binance, the largest cryptocurrency exchange globally, has filed to dismiss a lawsuit seeking $1.76 billion from the estate of the dissolved FTX. The exchange claims that the allegations lack substance and that the court does not have jurisdiction over the issue.

Binance vs FTX

Binance Believes FTX Legal Team is Shifting Blame

In the recent court documents, Binance contends that the legal representatives of FTX are incorrectly depicting the company and its co-founder, Changpeng Zhao (CZ), as masterminds behind the collapse of FTX. Binance argues that FTX is attempting to divert responsibility for its downfall, which ended with the former CEO Sam Bankman-Fried receiving a 25-year prison sentence for significant corporate fraud.

FTX Estate Claims Binance’s Comments Led to Its Collapse

The court battle stems from a complex financial transaction involving the acquisition of a stake that Binance held in FTX back in 2021. The Binance legal team asserts that the lawsuit doesn’t provide enough evidence to substantiate the claims against them. This ongoing case represents part of the broader attempts by the FTX estate to recuperate money owed to creditors, who collectively are owed over $11 billion.

The market’s reaction to these proceedings is likely to be scrutinized on May 30, a critical date for creditors anticipating reimbursements, potentially injecting substantial liquidity back into the cryptocurrency markets.