Binance Co-Founder CZ Moves to Dismiss $1.8B FTX Lawsuit (Report)
Main Idea
Changpeng Zhao (CZ) has filed a motion to dismiss a $1.76 billion lawsuit brought against him by the FTX bankruptcy trust, arguing the transaction in question is outside U.S. bankruptcy court jurisdiction.
Key Points
1. CZ's legal team argues the 2021 deal involving Binance's equity in FTX is a foreign transaction, placing it beyond the reach of U.S. bankruptcy laws.
2. The lawsuit alleges Binance held a 20% stake in FTX's international unit and 18.4% in the U.S. arm, with funds transferred by Alameda Ltd, a BVI-registered company.
3. CZ claims he was a 'nominal counterparty' in the deal and attributes FTX's collapse to Sam Bankman-Fried's misconduct.
4. Former Binance executives Samuel Wenjun Lim and Dinghua Xiao are also seeking dismissal from the FTX lawsuit.
5. CZ completed a four-month prison sentence in September 2023 for U.S. anti-money laundering violations, while SBF is serving a 25-year sentence for fraud and conspiracy.
Description
Changpeng Zhao (CZ) has filed a motion to dismiss a $1.76 billion lawsuit brought against him by the FTX bankruptcy trust. He says the court has no legal authority over him because he lives in the United Arab Emirates (UAE). CZ’s Defence According to a Bloomberg report, his legal team submitted the motion on Monday to the U.S. Bankruptcy Court for the District of Delaware, asserting that the accusations fall outside the court’s reach. “The claims are so far removed from Delaware and even the Uni...
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