Another major legal turn has come to light in the Crypto world, where Binance, one of the world’s largest crypto exchanges, has sought to dismiss the $ 1.76 billion filed by FTX. Binance says that the case is wrongly blamed for Binance and its Ex-CEO Changpeng Zhao (CZ) for FTX Fall Down, while the real reason is fraud inside FTX. The petition was filed in the Delaware Bankruptcy Court on 16 May. This news has come when Users now payments after 3 years of FTX Fall Down Is happening
Binance legal defense, lawsuit legally weak
Binance’s legal team said in the documents filed in the court that FTX did not fall due to any external intervention, market tampering, or any action of binance, but the real reason for this was Insider fraud. He pointed to the punishment of CEO Sam Bankman-Fied (SBF), former FTX, who has already been convicted in 7 frauds and conspiracy cases.
Binance says that the legal team of Plaintiffs, the FTX, is trying to show that FTX was as a decline due to an external reason, while it was the largest corporate fraud in history.
FTX allegations and binance response
It has been alleged by the FTX that Binance had received billions of $ billions of crypto assets in a 2021 buyback deal, which was illegally given by customers funding. To this, Binance replied that after that deal, FTX worked for 16 months and there was no concrete indication at that time that FTX is on the verge of being bankable.
The FTX has also accused CZ for a tweet of 6 November 2022, in which he announced to sell FTT token. FTX says that this tweet spread panic in the market and FTX began to decline.
On this, Binance clarified that the decision was taken on the basis of a public report, coindesk’s 2 November 2022 article, in which the financial status of Alameda Analysis was questioned.
Question on court rights limit and validity of the case
Binance has also questioned the rights limit of the court. He says that foreign institutions who have been named in the case are not registered in the US nor their headquarters are there, so the American court does not have the authority over them.
as well as Binance Has described the claims of FTX as “based on speculation” and “the idea behind a guilty person”. He says that these are only incomplete arguments of State Law, which have been introduced without proof.
Conclusion
Binance has demanded from the court to permanently dismiss the case so that it cannot be re -filed. On the other hand, FTX is still delaying its reply. Meanwhile, FTX’s Medication Believe has announced to repay the second installment of more than $ 5 billion from May 30, hoping that users affected by bankruptcy will provide some relief. In the coming days, the court’s decision will decide the direction of the trial and decide how decisive the role of Binance was, or the FTX Fall Down is trying to convince someone else.
Also read:Sec accused Fraud on Unicoin, investigation begins
