Co-founder of Binance CZ is to reject $ 1.8B FTX rights case (report)

Changpeng Zhao (CZ) has submitted a motion to dismiss a lawsuit of $ 1.76 billion submitted by the FTX Bankruptcy Trust against him.

He says that the court has no legal authority about him because he lives in the United Arab Emirates (VAE).

CZ’s defense

According to a Bloomberg report, his legal team submitted The motion on Monday at the US bankruptcy court for the Delaware district, claiming that the accusations are beyond the court’s reach.

“The claims are so far removed from Delaware and even the United States that the articles of association that do not miss an extraterritorial application are not even applicable,” his lawyers wrote in the submission.

In November 2024, the ZHAO, Binance lawsuit and various former managers of receiving billions of dollars accused of funds that were wrongly moved by FTX founder Sam Bankman-Fried (SBF). It focuses on a Deal of July 2021 in which the exchange has recovered its equity in the international and American entities of FTX. According to the trust, Binance had a 20% interest in the international unit of FTX and 18.4% in the American arm.

Judicial data show that Alameda Ltd, a company that is registered on the British Virgin Islands, has transferred the funds for FTX. On the other hand, the Binance entities involved were registered in Ireland, the Cayman Islands and the British Virgin Islands. The legal team of CZ states that this makes the transaction foreign and out of the reach of the American bankruptcy laws. They also claim that he was a “nominal counterparty” in the deal, which means that he was not very involved in the process.

The entry of Zhao also described the relationship between FTX and Binance as only temporary. They ended their partnership due to personal disagreements, after which the equity of Binance in Bankman-Fried’s company was exchanged for cryptocurrency.

The Crypto entrepreneur claims that the lawsuit blames him unfairly and Binance for the collapse of FTX, which he described came about as a result of the misconduct of SBF. He also argued that serving legal articles through lawyers established in the US is not valid under the Bankruptcy Act when the defendant lives abroad. His team says that trust tries to stretch his claims outside the American boundaries in ways that are not supported by the law. They say that the fraud claims do not meet the standards required for protection under federal rules that are linked to securities contracts.

Former Binance leaders are also looking for dismissal

This development follows similar movements that were submitted last month by former Binance -executives Samuel Wenjun Lim and Dinghua Xiao, which are also mentioned in the FTX right store and try to be removed from the case.

CZ completed a prison sentence of four months in September last year after he had declared guilty of American anti-money laundering violations. In the meantime, Sam Bankman-Fried serves 25 years for fraud and conspiracy.

Elsewhere, De Verdele Beurs announced that it will distribute the next series of credit claims on 30 September. From August 2025 it gave around $ 6.2 billion back to former customers in two large rounds.