Binance Seeks Dismissal of FTX’s $1.76B Clawback Lawsuit – Coincu

The global cryptocurrency exchange Binance has filed a request to the Delaware bankruptcy court, seeking the dismissal of a $1.76 billion clawback lawsuit filed by FTX.

The legal dispute, centered around the July 2021 stock buyback between Binance and FTX, highlights a continued impact on legal interpretations between exchanges.

Binance Defends Against $1.76 Billion FTX Lawsuit

Binance is challenging FTX’s lawsuit by asserting that the latter’s collapse was due to “one of the largest corporate frauds in history,” led by Sam Bankman-Fried, FTX’s founder. Binance’s court documents argue that the lawsuit is “legally unfounded,” emphasizing that FTX’s fraud and mismanagement were responsible for its downfall, not Binance’s actions.

From an operational standpoint, Binance asserts that the transactions involved should be protected under bankruptcy law as they were linked to securities contracts. This point is crucial as it underlines a legal precedent that may affect similar cases in the future.

Binance… claimed that the FTX collapse was the result of ‘one of the largest corporate frauds in history’ led by Sam Bankman-Fried, and not due to Binance’s or Zhao’s actions.

FTX Token Recovers Amid Legal Scrutiny, Trading Data Analyzed

Did you know? Attempts to recover assets before bankruptcies aren’t new, paralleling legal actions seen after the Mt. Gox and Voyager collapses, often hinging on transaction timing and fraud intent recognition.

FTX Token (FTT) currently trades at $1.24 with a market cap of $406.75 million, according to CoinMarketCap. Despite trading volume dropping by 7.10% in the last 24 hours, the token has seen a 51.91% increase over the last 30 days. FTT’s recovering trajectory indicates shifting investor sentiment, further engaged by the ongoing legal scrutiny.

The Coincu research team suggests that regulatory outcomes in this case might impact future contract dealings between exchanges. Analyses indicate a careful watch on governance shifts and how legal interpretations could redefine market and operational assurances for crypto exchanges globally.