Binance Labels FTX Lawsuit as 'Legally Baseless'

Binance moves to dismiss FTX's $1.76 billion lawsuit, citing lack of jurisdiction and arguing that disputed transactions were governed by Hong Kong law.

Summary

Binance has filed a motion to dismiss FTX's $1.76 billion lawsuit, challenging the U.S. court's jurisdiction over foreign entities and rejecting claims about FTX's insolvency in 2021. The exchange argues that none of the defendants resided in the U.S. and that the disputed agreements fall under Hong Kong law. Binance also maintains that its 2022 FTT liquidation was driven by market risk, not malicious intent.

Terms & Concepts
  • FTT: The native token of the FTX cryptocurrency exchange, which was central to the platform's collapse in 2022.
  • Clawback: A legal action to recover funds that were previously distributed, often used in bankruptcy cases to reclaim transfers made before the bankruptcy filing.