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In the new FTX-Binance saga episode, the largest cryptocurrency exchange platform requires a massive complaint. Binance describes the accusation of FTX as “legally insufficient” and refuses to take responsibility for the collapse of its competitor, but rather points to massive fraud organized by Sam Banman fried.
In short
- Binance asks the US judge to dismiss the complaint at $ 1.76 billion filed by FTX for the purchase of shares of 2021.
- The platform says that the collapse of FTX is the result of a massive fraud organized by its own leaders.
- Binance claims that the court has no power over its foreign entities and that its tweets 2022 were not false or deceptions.
Binance counterattacks and rejects all responsibility
The first cryptocurrency platform in the world was formally asked by judge Delaware to reject the FTX complaint. In his request, Binance confirms that there is no connection between his actions or by the actions of his former CEO ChangPeng Zhao and the fall of FTX.
” FTX seeks to deny that its collapse is caused by one of the largest business fraud in history “Binance clearly calls in his legal document.
Recall that Sam Banman, a former FTX boss, currently has been in prison in prison to divert billions belonging to his customers and investors.
The core of the conflict is a colossal amount: $ 1.76 billion in cryptocurrencies. FTX transferred this amount to Binance in 2021 to buy its own events.
Indeed, Binance gained 20 % of FTX in 2019, sharing that FTX then recovered by paying with different tokens (BNB, Busd and FTT).
FTX liquidators claim that the company was already in bankruptcy during this transaction of 2021 and that managers illegally used the customer’s money to finance this takeover.
Binance categorically rejects this argument by emphasizing a simple fact: FTX continued in operation normally for 16 months after this operation, which is contrary to the idea of insolvency at that time.
Tweet war and question of jurisdiction
In this case, the tweets ChangPeng Zhao also play a key role. The FTX accuses Binance’s former boss of intentionally caused panic by announcing Twitter 6 November 2022 that Binance would sell all his tokens of FTT.
Binance defended himself by remembering the important fact: “ These tweets were published just after an explosive article in Coindesk that has already revealed FTX problems ».
The company emphasizes that FTX has submitted any evidence that these reports contained false information.
Binance also develops a solid legal argument: the US court should not assess this case. For what? Because none of the accused is in the United States and directly has participated in questionable money transfers.
This legal dispute comes at a time when FTX finally prepares to pay its largest creditors scheduled for 30 May 2025. The report that brings little hope to many investors who have lost wealth in what remains one of the largest bankruptcies in the crypt of the world.
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Passionate Bitcoin, I like to explore meanders blockchain and cryptos and share my discoveries with the community. My dream is to live in a world where privacy and financial freedom is guaranteed for everyone, and I firmly believe that Bitcoin is a tool that can make it possible.
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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.