Binance Seeks Dismissal of FTX's $1.76 Billion Lawsuit

Binance has filed a motion to dismiss FTX’s $1.76 billion lawsuit.
The lawsuit revolves around disputed fund transfers between the two companies in 2021.
Changpeng Zhao, former CEO of Binance, has publicly criticized the lawsuit.
The outcome could impact cryptocurrency market dynamics.
FTX’s bankruptcy has led to significant losses for creditors.

binance-dismisses-ftxs-1-76-billion-lawsuit-over-jurisdiction — Binance Dismisses FTX’s $1.76 Billion Lawsuit Over Jurisdiction

Binance moved to dismiss FTX’s $1.76 billion lawsuit, addressing jurisdiction issues and blaming Sam Bankman-Fried, announced in a Delaware court filing made public May 21, 2025.

The lawsuit has implications for crypto markets, highlighting past tensions and leadership disputes among top exchanges.

Binance Contests $1.76 Billion FTX Lawsuit in Court

Binance filed a motion to dismiss a $1.76 billion lawsuit from FTX in a Delaware court. The case centers on disputed 2021 fund transfers between the two companies. Changpeng Zhao, former CEO of Binance, commented on the situation:

“Of course, Plaintiffs’ only support for this theory is pure conjecture—much of it sourced from a convicted fraudster’s hindsight speculation.”

Primary figures include Binance’s former CEO Changpeng Zhao and FTX’s Sam Bankman-Fried. Binance attributed the FTX collapse to Bankman-Fried’s actions.

Lawsuit Dismissal Could Shift Crypto Market Strategies

The lawsuit’s dismissal attempt could influence cryptocurrency market dynamics and inter-company legal strategies. Binance’s legal arguments raise questions about jurisdictional reach. FTX’s bankruptcy significantly affected creditors, losing over $11 billion. A new plan reportedly may recover nearly 119% of losses, aided by crypto market gains.

FTX Collapse Contextualizes Ongoing Crypto Legal Battles

The collapse of FTX in 2022 marked one of crypto’s major failures. This case highlights historical tensions and deteriorating relationships among crypto leaders. Experts consider how past legal precedents may affect outcomes. Data suggests Binance’s jurisdictional defense aligns with previous international crypto-related cases.

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