Binance filed a request for rejection of a trial of $ 1.76 billion brought by the FTX succession, accusing the exchange of deceased crypto of trying to divert the blame for its own failure.
Placed on May 16 at the Delaware bankruptcy court, the Binance legal team qualified the pursuit of “legally deficient”, declaring that the collapse of the FTX was not triggered by the manipulation of the market or a hostile action but by internal misconduct.
“The complainants claim that the FTX did not collapse following one of the most massive business fraud in history,” said the file, indicating the conviction of SAM “SBF” Bankman Fried for seven charges of fraud and conspiracy.
The succession of the FTX alleys that Binance received billions of crypto during a buy -back agreement in 2021, poorly funded with customer assets.
Binance rejects this assertion, declaring that “the FTX remained in activity for 16 months” after the acquisition of the part and that there was “no plausible complaint” that the exchange was insolvent at the time.
In relation: Binance wants arbitration for all members of the class of securities class
Tweet of Zhao and Ftt crash
The trial also accuses the former CEO of Binance, Changpeng Zhao, of triggering a collapse by a tweet on November 6, 2022 announcing the liquidation of the FTT tokens.
In response, Binance argued that Zhao’s tweet was based on public concerns. “Binance’s decision to liquidate his remaining FTT was, in fact,” due to recent revelations “- in particular, the Coindesk article of November 2, 2022” which explained the bankruptcy of Alameda Research.
The company also defended Zhao’s comment that Binance is aimed at minimizing the impact of the market. “The complaint does not contain such facts” to prove that the binance had no intention to follow.
To contest the jurisdiction of the court, Binance said that none of the foreign entities named “is incorporated or maintains their main business location in the United States” and therefore does not come out of the reach of the court.
The file also criticizes the applicant’s story as “a bag of law of the law of the law of the State” on the basis of “pure conjectures – a large part from the speculation of the decline of a condemned fraudster”.
Binance asked the court to reject all complaints with prejudice. The FTX domain has not yet made its response.
In relation: FTX EU creditors can now withdraw money from Backpack Exchange
FTX to pay $ 5 billion in the second cycle of creditors’ reimbursement
FTX should start its second repayment cycle for creditors for more than two years after having filed a bankruptcy.
In a notice of May 15, the FTX Recovery Trust announced that more than $ 5 billion will be distributed from May 30 via Bitgo and Kraken, targeting the parties in the second group eligible as part of the exchange reorganization plan.
According to the plan, five groups of creditors classified as “convenience courses” should receive between 54% and 120% of their complaints. In total, FTX can reimburse up to $ 16 billion, depending on the final number of valid complaints.
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