Binance co-founder Changpeng Zhao files motion to dismiss $1.7 billion FTX suit

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Changpeng Zhao submitted a request to reject a $ 1.7 billion lawsuit from FTX TRUST related to the shares rebuilding agreement.
The lawsuit claims that Binance and its executives have received inappropriate money, but Zhao competes with the United States and demanding legal deficiencies.

Changpeng “CZ” Zhao, co -founder of Binance, submitted a proposal to reject an ESTANCE law from FTX, which seeks to return $ 1.7 billion linked to the Re -purchasing agreement 2021, according to Jadida. a report From the Bloomberg Law.

In November 2024, FTX’s The bankruptcy drug filed a lawsuit against Binance And CZ, claiming that their 2021 shares was incorrectly funded by Alameeda Research and has a fraudulent transition.

The lawsuit also accuses CZ of destabilizing FTX through misleading tweets and negative media comments, especially with regard to the digital FTX assets that the entity believes in its financial collapse.

In a proposal dated August 4, Chek Chikilad has argued that a lawsuit against FTX should be deferred against him because the court lacked the jurisdiction and that the service was inappropriate. His lawyers said that FTX was wrongly served by a lawyer residing in the United States, who does not fulfill the legal requirements to serve a foreign citizen such as CZ, who lives in the United Arab Emirates.

They also claim that the issue does not belong to Dilayer because the main parties and transactions, Olmeea in BVI, Binance entities in Ireland and the Kayman Islands, are all based abroad.

“The claims are removed so far from Delaware, and even the United States, so that the laws that lack an application outside the regional borders do not apply,” Zhao said in a statement.

Besides procedural objections, Zhao argued that the case lacks merit. He said that FTX, a failed institution designed by Sam Bankman-Fred, who is now in prison, is trying to convert the blame for its collapse on Binance.

While Binance and FTX were briefly business partners, they have long separated FTX. Zhao claimed that the decision to sell FTT Holdings from Binance was publicly taken and over a year after the end of the partnership.

FTX has taken legal measures against its former allies in the Dilayer bankruptcy court, targeting Anthony Scrameschi, Crypto.comBybit, Kucoin, and Mark Zuckerberg’s Political Group Fwd.usBecause it seeks to recover the largest possible amount of lost capital.

The stock market now plans to issue the third round of payment of creditors starting from September 30.