Binance founder Changpeng Zhao (CZ) has moved to dismiss a $1.76 billion lawsuit filed against him by the FTX bankruptcy estate, arguing the Delaware court handling the case lacks jurisdiction over him.
Zhao contends he falls outside the court’s reach as he is neither a U.S. citizen nor resident, currently residing in the United Arab Emirates. A central pillar of his argument is the claim that he was improperly served with the lawsuit documents, challenging the procedural validity of the case.
The lawsuit aims to claw back assets related to Binance’s repurchase of FTX equity in 2021, prior to FTX’s collapse. Zhao asserts that the claims against him lack a legal basis and emphasizes that he has no relevant ties to the State of Delaware.
The outcome of this jurisdictional challenge could have significant ramifications for the lawsuit’s progression and potentially impact Binance’s operational standing and reputation.