Binance defends itself against complaint from FTX and describes allegations as “unfounded”

Binance requests the dismissal of $ 1,76 billion submitted by the FTX Protection Administration on the grounds that the lawsuit is an attempt to rewrite the history of the collapse of FTX.

In one Applicationwhich was submitted to the insolvency court in Delaware on May 16, Binance said that the now dissolved stock exchange “ignores” of its doom of her doom-a massive internal fraud scandal under the leadership of the founder Sam Bankman-Fried, which has now been convicted of multiple crimes. The crypto giant described the case as “legally unfounded” and accused the FTX estate to build its demands on speculation and selective review.

In the lawsuit it is claimed that Binance had benefited unfairly from a share buyback financed by misappropriated customer money and that CEO Changpeng Zhao (CZ) triggered the fall of FTX with a twidation of FTT-TOKEN.

Binance denies any misconduct on both points and refers to the period of 16 months between the buyback and the collapse of FTX. The company also argues that Zhaos Tweet was based on widespread financial concerns that had been expressed by Coindesk.

In addition, Binance asserts that the court in Delaware is not responsible, since the companies mentioned in the lawsuit have their headquarters outside the United States and therefore not underlay its sovereignty. The company asked the company to completely dismiss the lawsuit.

Meanwhile, FTX continues to process his bankruptcy. The insolvency administrator announced that from May 30, a second round of the creditors' repayments of the creditor of over $ 5 billion. The funds are distributed via Bitgo and octopus to creditors of the convenience class, whereby the withdrawals are expected to be between 54% and 120% of the original claims.