Ex-Binance CEO CZ Seeks Dismissal of $1.76B FTX Lawsuit Citing Jurisdiction

Changpeng “CZ” Zhao, co-founder and former CEO of Binance, has filed a motion in Delaware bankruptcy court seeking dismissal of FTX’s $1.76 billion clawback lawsuit, arguing the court lacks jurisdiction over him. CZ claims he is a resident of the United Arab Emirates and that the transactions in question were conducted through foreign entities in jurisdictions such as the British Virgin Islands, Ireland, and the Cayman Islands, placing the matter outside the reach of U.S. bankruptcy law. He describes himself as a “nominal counterparty” in the 2021 share repurchase deal between FTX and Binance and asserts that FTX’s claims unfairly shift blame from Sam Bankman-Fried’s internal mismanagement to Binance and its executives. The lawsuit, part of broader efforts by FTX’s bankruptcy estate to recover funds allegedly improperly transferred before FTX’s collapse, also names other Binance executives who have sought dismissal. Binance’s legal team characterizes the claims as legally unfounded and lacking extraterritorial applicability, emphasizing the minimal connection to Delaware or the U.S. This dispute highlights ongoing legal battles following FTX’s bankruptcy and the complex jurisdictional challenges posed by international cryptocurrency transactions.