Changpeng Zhao Seeks Dismissal of $1.76 Billion FTX Lawsuit

Binance founder Changpeng Zhao (CZ) has sought the dismissal of a $1.76 billion lawsuit filed by FTX representatives. He cited the lack of jurisdiction of the American court due to his residence in the UAE.

CZ’s lawyers noted that the disputed transactions were cross-border, and US bankruptcy laws do not apply outside the country.

Representatives of the bankrupt platform are attempting to recover funds they believe were improperly withdrawn by the exchange’s founder, Sam Bankman-Fried. The lawsuit pertains to a stock buyback deal in July 2021.

At that time, Binance sold its stake in FTX in exchange for cryptocurrencies, including FTT tokens. Lawyers for the collapsed exchange argue that the platform and its former management received these funds improperly.

In Zhao’s statement, he claims that FTX is “meaninglessly accusing” him of Bankman-Fried’s mistakes. He emphasized that he cannot be a defendant in this case.

As reported, the collapsed platform is in the process of approaching issuers regarding its assets and is preparing new lawsuits against those who ignore requests.

In May, Binance filed a motion to dismiss the $1.76 billion lawsuit from FTX. The company’s lawyers called the claims “legally baseless” and demanded the case be dropped.