“I’m a Foreign Citizen”: CZ Fights Back Against $1.76 Billion FTX Clawback Case
Main Idea
Binance founder Changpeng 'CZ' Zhao is contesting a $1.76 billion clawback lawsuit filed by the FTX bankruptcy estate, arguing the U.S. court lacks jurisdiction as he is a foreign citizen residing in the UAE.
Key Points
1. CZ's legal team filed a motion to dismiss the lawsuit, claiming the Delaware court lacks jurisdiction because he resides in the UAE and the transaction involved offshore entities.
2. The lawsuit stems from a 2021 share repurchase between FTX and Binance, with FTX alleging CZ and Binance improperly benefited from the deal using funds from Alameda Ltd.
3. CZ argues he was a 'nominal counterparty' to the deal and not the actual recipient of the funds, which were in BUSD and FTT, not USD.
4. The lawsuit is parallel to criminal charges against CZ and former FTX CEO Sam Bankman-Fried, with CZ having served a four-month prison term for money laundering violations.
5. Two other former Binance executives, Samuel Wenjun Lim and Dinghua Xiao, have also filed motions to dismiss the lawsuit.
Description
CZ files a motion to dismiss the FTX lawsuit, claiming that US courts have no authority over offshore deals. Binance argues the FTX transaction used crypto and involved only foreign-based entities. FTX blames CZ’s posts for the collapse while his lawyers say the company was already insolvent. Binance founder Changpeng “CZ” Zhao is pushing to have a $1.76 billion clawback lawsuit filed by the FTX bankruptcy estate dismissed, arguing U.S. courts have no authority to hear the case against him. Acco...
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