Former Binance CEO Changpeng Zhao has filed to dismiss a $1.7 billion lawsuit from collapsed cryptocurrency exchange FTX, contesting U.S. jurisdiction over disputed offshore transactions.
Legal representatives argue transactions featured Binance entities based in Ireland and the Cayman Islands, occurring outside American territorial boundaries. Zhao’s motion maintains U.S. bankruptcy law lacks authority to govern these international operations given their overseas execution.
The lawsuit represents efforts connecting Zhao to FTX’s downfall, which he counters by characterizing Binance’s relationship as fleeting and purely transactional. He emphasizes Binance interactions preceded FTX’s operational failures.
Should Zhao prevail, this defense may establish precedent delineating limitations of U.S. regulatory authority concerning extraterritorial cryptocurrency dealings, particularly involving offshore entities.