According to BlockBeats, on August 6, CZ became the latest person associated with Binance to request the bankruptcy court to dismiss the FTX trust allegations. This trust is attempting to recover the $1.76 billion improperly transferred by Sam Bankman-Fried (SBF). CZ filed a motion in the Delaware bankruptcy court on Monday, stating that the FTX trust and FTX Digital Markets Ltd. cannot prove that he has a "residence" in Delaware, as he is a resident of the UAE and not subject to the jurisdiction of that state.
CZ stated in the document: "These allegations are far removed from Delaware, and even from the mainland United States, and the relevant laws do not have extraterritorial effect, therefore they do not apply at all."
As early as November 2024, the FTX trust and FTX Digital Markets had sued Binance and several of its executives over the share buyback agreement from July 2021. In July of this year, two former Binance executives, Samuel Wenjun Lim and Xiao Dinghua, also requested the court to remove themselves from the lawsuit.
The FTX trust allegations claim that Binance and the aforementioned executives obtained funds through the share buyback transaction when they sold approximately 20% of FTX's international business and 18.4% of FTX's U.S. business. According to court documents, to complete this transaction, Alameda Ltd. (registered in the British Virgin Islands) transferred funds to Binance. The related entities of Binance are registered in Ireland, the Cayman Islands, and the British Virgin Islands, so the CZ team pointed out that this transaction has a clear "extraterritorial nature" and should not be subject to U.S. law.
