CZ Fights Back: Binance Founder Moves to Dismiss FTX’s $1.76B Clawback Lawsuit

Binance's Changpeng Zhao strikes first—filing to toss FTX's $1.76 billion 'desperation play' lawsuit. Crypto's heavyweight legal bout escalates.

The $1.76B Blame Game

FTX's bankruptcy team wants blood, but CZ's lawyers call it a 'legally baseless cash grab.' Discovery could expose even uglier truths.

Regulators Watching (While Doing Nothing)

SEC chair Gary Gensler reportedly 'monitoring the situation'—translation: waiting to fine whoever loses. Classic regulatory theater.

This isn't just about two collapsed giants. It's crypto's reckoning with accountability—or proof the industry would rather litigate than innovate.

FTX Wants to Recoup $1.76B From Binance: Here’s Why

In November 2024, FTX filed a lawsuit against Binance exchange and its founder CZ. FTX sought to recover $1.76 billion from Binance, claiming it was transferred as part of a fraudulent transaction.

FTX has sued @binance and ex-CEO Changpeng Zhao @cz_binance for $1.8B, alleging fraudulent dealings that damaged its stability.#FTX #Binance https://t.co/WaIpSYlx4v

The $1.76 billion transaction was a 2021 share purchase agreement that Binance made with FTX, which the latter claims was fraudulent due to its insolvency at the time.

A Binance spokesperson said at the time that the exchange WOULD defend itself against the “meritless” claims.

This isn’t the first time Binance has filed a motion to dismiss FTX’s $1.76 billion clawback suit. A similar court paper submitted in May to a Delaware judge noted that the beleaguered company attempted to hold Binance accountable for FTX’s crash, and “shift the blame” away from Sam Bankman-Fried.

FTX “Nonsensically Blame” CZ And Binance

The Monday motion read that the FTX trust “nonsensically blame” CZ and Binance for Bankman-Fried’s “pervasive malfeasance”.

“The claims are in any event legally unfounded, and many are outright incoherent,” it added.

Further, Zhao said that the constructive fraud claims don’t meet legal requirements that permit “qualifying transactions” linked to a securities contract under federal law.

CZ pled guilty to US anti-money laundering violations and served four months in prison. Meanwhile, Bankman-Fried is serving a 25-year sentence after being convicted of several offences, including fraud and conspiracy.