Binance Founder Changpeng Zhao Files Motion to Dismiss $1.8B FTX Lawsuit
Main Idea
Changpeng Zhao, founder of Binance, has filed a motion to dismiss a $1.76 billion lawsuit by FTX's bankruptcy estate, arguing lack of jurisdiction and disputing the legal grounds of the claims.
Key Points
1. The lawsuit seeks to recover $1.76 billion from a 2021 equity buyback deal where FTX repurchased a 20% stake from Binance using FTT tokens and Binance-branded assets.
2. Zhao claims he was improperly served and lacks sufficient ties to Delaware to be subject to its jurisdiction.
3. Zhao's legal team argues he was merely a 'nominal signatory' in the transaction and did not directly receive the disputed funds.
4. The lawsuit alleges that Sam Bankman-Fried misused FTX customer funds to finance the buyback, contributing to FTX's collapse in 2022.
5. Zhao previously served a four-month sentence and settled with U.S. regulators for $4.3 billion, stepping down as Binance CEO as part of the agreement.
Description
CZ argued that a Delaware court has no authority over him in a case tied to 2021 crypto transfers from Sam Bankman-Fried.
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