**CZ Challenges \$1.76B FTX Lawsuit: "US Court Has No Authority!"**
#CZBinance #CryptoLaw #FTXDebacle
One of the crypto industry's biggest legal dramas has taken another twist. Changpeng Zhao (CZ), founder and ex-CEO of Binance, is pushing back hard against a massive \$1.76 billion claim filed by FTX’s bankruptcy team.
📌 **Why Is FTX Going After CZ?**
Following its 2022 collapse, FTX’s administrators have been aggressively pursuing funds they believe were unfairly taken before bankruptcy. They allege that Binance improperly received FTT tokens and other crypto assets during its exit from a 20% equity stake in FTX Global—an exit that happened under now-convicted Sam Bankman-Fried (SBF).
📃 **CZ’s Legal Defense:**
Filed in a Delaware court, CZ’s legal motion to dismiss the case is centered around four main points:
* ⚖️ **No Jurisdiction:** CZ lives in the UAE and argues the U.S. court lacks legal authority over him.
* 🌍 **International Dealings:** The transactions occurred across borders, beyond the scope of U.S. bankruptcy law.
* 💱 **Legitimate Trade:** Binance returned its shares in exchange for assets—nothing unlawful about it.
* 🚫 **SBF's Actions, Not His:** CZ says he cannot be blamed for FTX’s downfall or SBF’s misconduct.
🤝 **Background: Binance & FTX’s Rocky History**
Once early partners, Binance invested in FTX but later sold its shares back—sparking tensions. FTX’s post-collapse leadership has since branded that exit as shady, while CZ calls it unjustified and politically charged.
🧠 **What's Next?**
If the court agrees that CZ is out of reach legally, the case might get thrown out. But if not, a complex international legal battle may unfold.
⚖️ **Two Founders, Two Outcomes:**
* ✅ **CZ:** Recently served 4 months in U.S. custody for AML violations.
* ❌ **SBF:** Now serving a 25-year sentence for one of the biggest frauds in crypto history.
#CFTCCryptoSprint #BinanceHODLerPROVE #BinanceHODLerTOWNS #BTCReserveStrategy CryptoRegulation #CryptoNews #BinanceUpdate #FTXCollapse #BitcoinLegal
