Binance Throws Shade at FTX, SBF’s Legal Troubles Get a New Twist!

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Ah, the drama never ends in the world of crypto. On May 16, Binance, in a rather cheeky legal rebuttal, called for the dismissal of a $1.76 billion clawback lawsuit brought by the FTX estate. It seems that Binance has no intention of paying for FTX’s catastrophic implosion. Instead, they’re throwing all the blame squarely at the feet of the one and only Sam Bankman-Fried (SBF), who, in typical fashion, is apparently rewriting history to avoid the spotlight. 🧐

The legal eagles at Binance are not exactly sugar-coating their defense. They claim the lawsuit is “legally deficient,” and a prime example of “speculation sourced largely from a convicted fraudster’s hindsight.” Ouch. I guess when you’re as big as Binance, you can afford a bit of snark in court.

Binance Says, “Not Our Problem!”

Now, here’s where things get deliciously complicated. The dispute hinges on a 2021 deal where FTX repurchased Binance’s 20% equity stake using a mishmash of crypto assets, including their beloved FTT token, BUSD, and BNB. The FTX estate claims that Binance is guilty of being “unjustly enriched” by the deal and that they somehow played a role in the implosion of FTX. Binance, on the other hand, insists that they did nothing more than take part in a perfectly reasonable transaction. Talk about a he-said-she-said situation!

The Battle of Tweets and Billions

The FTX estate’s lawsuit accuses Binance CEO Changpeng Zhao (CZ) of pulling the trigger on the whole disaster by tweeting in November 2022 that Binance would be liquidating its FTT holdings. That tweet, they say, set off a massive withdrawal spree that pushed FTX over the cliff. Binance, unsurprisingly, disagrees. According to them, FTX continued to operate for another 16 months after the 2021 deal—so clearly, that tweet wasn’t the cause of their downfall. Perhaps CZ was just giving the market a gentle nudge, not starting an apocalypse. 🤷‍♂️

//x.com/cz_binance/status/1589283421704290306″>CoinDesk article from November 2, 2022, revealing some rather worrisome details about Alameda Research’s balance sheet. But sure, let’s just pretend it was all part of a grand conspiracy to destroy FTX. 🙄

Blame SBF, Not Us!

Binance’s rebuttal also takes aim at the FTX estate’s efforts to shift blame away from its internal failures. Their lawyers argue that this whole debacle was a result of internal mismanagement, not some elaborate external plot. It’s almost like Binance is saying, “SBF ran the show, not us. So, why don’t you just leave us out of this mess?” And, frankly, who can blame them? After all, SBF’s “masterpiece” of fraud, as a federal judge so kindly put it, landed him a 25-year prison sentence earlier this year.

In conclusion, Binance is holding firm to its stance. The FTX estate’s accusations of foul play? “Baseless,” they say. And as for SBF’s role? Well, he was the mastermind behind “one of the most massive corporate frauds in history.” Talk about a fall from grace. 🏰

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2025-05-20 22:26