The legal counsel for Binance has labeled the lawsuit as “legally deficient,” insisting that the downfall of FTX was not the result of market manipulation or any hostile actions, but was due to internal mismanagement. “Plaintiffs are attempting to divert attention away from the fact that FTX’s collapse was due to one of the largest corporate scams in history,” the motion reads, referring to Sam “SBF” Bankman-Fried’s conviction on seven counts of fraud and conspiracy.

The FTX estate further claims that Binance received billions in cryptocurrency during a buyback deal in 2021, which was funded improperly with customer assets. Rejecting this allegation, Binance argues that FTX “remained a viable entity for 16 months” after the share buyback, and contends there is “no plausible claim” that the exchange was insolvent at that point.

The lawsuit also accuses former Binance CEO Changpeng Zhao of causing a market crash by tweeting about the liquidation of FTT tokens on November 6, 2022. Binance retorts that Zhao’s tweet was grounded on publicly available information, citing a November 2, 2022 CoinDesk article that revealed Alameda Research’s financial status.

In a further defence, Binance refutes any suggestion that it had no intention of minimising market impact. The exchange also challenges the court’s jurisdiction, stating that none of the foreign entities named in the suit “are incorporated in or have their principal place of business in the United States” and are, therefore, outside the court’s jurisdiction.

The motion also criticizes the plaintiff’s narrative as “a hodgepodge of state law claims” built on “pure conjecture—much of it sourced from a convicted fraudster’s hindsight speculation.” Binance has requested the court to dismiss all claims with prejudice. The FTX estate has yet to file its response.

In related news, the FTX Recovery Trust announced on May 15 that it will begin its second round of repayments to creditors starting May 30. Over $5 billion will be disbursed through BitGo and Kraken to the second group of eligible parties under the exchange’s reorganization plan. Depending on the final number of valid claims, FTX may repay up to $16 billion in total.

The post Binance Moves to Quash $1.76B FTX Lawsuit, Points Finger at SBF for Demise appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

According to a recent report from Fortune, insiders in the political scene have already labeled SBF’s pardon attempt as a desperate move. In a bid to increase his chances, he has rebranded himself, aligning more with Republican ideologies.

Last week, Bankman-Fried broke prison rules by giving an unauthorized interview to Tucker Carlson from his jail cell. In the interview, he praised Republicans while distancing himself from Democrats. This violation landed him in solitary confinement.

An anonymous crypto lobbyist assessed SBF’s chances of a successful pardon campaign as “near zero,” taking into account the dynamics of Trump’s administration.

SBF’s strategic pivot towards right-wing views could be seen as an effort to charm Trump into granting him a pardon, following his conviction in the FTX fraud case. There’s speculation that his case might pique Trump’s interest—not due to the crypto connection, but because of Trump’s own issues with the legal system.

A recent New York Times report revealed that his family and allies are lobbying for his pardon, leveraging Trump’s history of granting clemency to those close to him or those who share his grievances.

However, the probability of SBF’s pardon bid succeeding is slim. SBF hasn’t shown any remorse and lacks substantial support. Furthermore, Trump’s commitment to “law and order” could outweigh his grievances with the legal system.

Legal experts warn that pardoning Bankman-Fried might alienate Trump’s support base, especially the working-class Americans and small investors who suffered losses due to FTX’s downfall.

In his first week in office, Trump pardoned Ross Ulbricht, the founder of Silk Road, delivering on a campaign promise. He condemned the prosecutors involved, deeming Ulbricht’s double life sentence plus 40 years as “excessive.”

The post Ex-FTX CEO SBF’s Trump Pardon Bid: A High-Stakes Political Play Unlikely to Succeed appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.