Binance requests to dismiss FTX's $1.76 billion recovery lawsuit, saying it is "legally flawed"
Online reports that Binance has asked a Delaware bankruptcy judge to dismiss a $1.76 billion lawsuit filed by FTX, saying the collapsed crypto platform was trying to "shift" the responsibility for its collapse from founder Sam Bankman-Fried to competitors. Binance Holdings Ltd. said in a motion for dismissal filed on Friday that the claim was "legally flawed" and could not reasonably link Binance or its former CEO Zhao Changpeng to the collapse of FTX. "The plaintiffs pretended that FTX did not collapse because of one of the most serious corporate frauds in history," the filing states that former CEO Sam Bankman-Fried is currently serving a 25-year prison sentence for defrauding customers, investors and lenders. The lawsuit was filed in November last year and aims to recover approximately $1.76 billion in cryptocurrency that FTX transferred to Binance in July 2021 under a share repurchase agreement.
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