Binance founder CZ challenges the $1.8 billion claim in the FTX case
CZ firmly opposes the $1.76 billion FTX lawsuit: 'The US court lacks jurisdiction!'
One of the most prominent legal battles in the cryptocurrency world has taken a new turn. Binance founder and former CEO Changpeng Zhao (#CZBINANCE) has officially filed a motion in court to dismiss the $1.76 billion lawsuit filed by the #FTX bankruptcy administration.
💼 Why was the lawsuit filed?
FTX, which experienced a major collapse in 2022, continues to seek compensation from various companies and individuals during the bankruptcy process, citing 'illegally obtained income' and 'improper transactions.' In this context, the current FTX administration has examined certain transactions related to Binance during the era of Sam Bankman-Fried.
According to the lawsuit, FTX's bankruptcy administration claims that the cryptocurrencies Binance received in exchange for its approximately 20% stake in FTX Global were obtained improperly. It is claimed that Binance acquired a significant amount of FTT tokens and other assets during the transfer of these shares, but this process is legally problematic.
📄 What are CZ's objections?
Changpeng Zhao's objection, filed on Monday in the Delaware bankruptcy court, included the following key arguments:
The US court lacks jurisdiction: CZ claimed that he resides in the United Arab Emirates (UAE), and therefore the Delaware court has no jurisdiction over him.
International transactions: he claimed that most of the disputed transactions occurred at the international level and were cross-border, and therefore US bankruptcy laws cannot apply to these transactions.
Buying cryptocurrency in exchange for shares is legal: he claimed that Binance returned its shares of FTX and that the assets he received in exchange constitute a lawful transaction.
Sam Bankman-Fried's crimes cannot be attributed to him: Zhao stated that SBF is responsible for the collapse of FTX and that he cannot be held accountable for this failure.
🔍 The History between Binance and FTX
As you may recall, the relationship between CZ and Sam Bankman-Fried (SBF) initially started as a 'partnership.' Binance joined FTX as an early investor but later decided to return its shares. After this sale, their relationship soured, leading to mutual accusations, especially during FTX's bankruptcy in 2022.
FTX's bankruptcy administration characterized some aspects of this process as 'corruption' and 'bad faith,' while CZ considers these accusations baseless and 'politically motivated.'
⚖️ What will happen with the case?
All eyes are now on how the Delaware court in the US will respond to CZ's jurisdictional challenge. If the court finds CZ to be outside of jurisdiction due to his residence, the case may be dismissed. However, if the court maintains jurisdiction and decides to proceed with the case, CZ is likely to face a longer legal battle.
🧩 Latest news: two CEOs, two different fates
CZ was sentenced to four months in jail for violating anti-money laundering regulations in the US and has recently been serving his sentence.
SBF (Sam Bankman-Fried) is currently serving a 25-year sentence for fraud.
#BTCUnbound #CFTCCryptoSprint #BTCReserveStrategy
