New York — May 21, 2025—Cryptocurrency exchange Binance has asked a U.S. federal court to dismiss a $1.76 billion lawsuit filed by FTX, arguing the case lacks legal jurisdiction and relies on “speculative and legally flawed” allegations. The motion comes after FTX’s bankruptcy estate accused Binance and its former CEO, Changpeng Zhao (CZ), of contributing to its 2022 collapse through alleged market manipulation and breaches of contract.
Jurisdictional Arguments Take Center Stage
In its filing, Binance contended that the U.S. court has no authority over the foreign entities named in the lawsuit. The company emphasized that neither Binance Holdings Ltd. (BHL) nor CZ are U.S. residents, and the disputed agreements at the heart of the case were governed by Hong Kong law.
Key points from Binance’s motion include:
Lack of U.S. Connection: Binance noted that none of the defendants “had a reasonable expectation of being haled into American courts” for the alleged events, which primarily involved foreign entities and contracts.
Non-Party Status: The exchange argued it was not a signatory to the original share purchase agreements between FTX and its investors, weakening FTX’s claim that Binance owed fiduciary duties.
“Plaintiffs do not sufficiently allege any meaningful connection between the BHL Defendants and the United States,” Binance stated in the filing.
Attack on FTX’s Insolvency and Causation Theories
Binance also challenged FTX’s core argument that the exchange’s actions caused its insolvency. The company disputed FTX’s claim that it was already insolvent in July 2021, when Binance made investments in FTX.
“If FTX truly were insolvent as of July 2021, then there was no value left to be ‘destroyed’ in November 2022,” Binance wrote. “Plaintiffs are pretending that FTX did not collapse as the result of one of the most massive corporate frauds in history”—a reference to FTX’s alleged $8 billion misappropriation of customer funds.
Dismissing Allegations of Social Media-Driven Bank Run
The filing addressed FTX’s claims that CZ’s 2022 tweets about Binance’s decision to liquidate its FTT token holdings sparked a bank run on FTX. Binance characterized these accusations as “exaggerated” and argued CZ’s posts were factual and did not mislead the public.
“Plaintiffs come nowhere close to showing how the alleged Tweets of a foreign CEO… can be said to have targeted the U.S.,” Binance stated. The company added that its decision to exit FTT was driven by “market risk” amid growing concerns about FTX’s financial stability, not an intent to harm the rival exchange.
Broader Implications for Cross-Border Crypto Litigation
The case highlights ongoing legal tensions in the cryptocurrency industry over jurisdiction and liability in cross-border transactions. If successful, Binance’s motion could set a precedent limiting U.S. courts’ reach in disputes involving foreign crypto entities.
FTX’s estate has yet to respond to Binance’s motion. The bankruptcy court is expected to hold a hearing on the dismissal request in the coming weeks.
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