One of the crypto industry's most high-stakes legal battles has taken a dramatic twist. Binance founder and former CEO Changpeng Zhao (CZ) has officially challenged the $1.76 billion lawsuit filed against him by FTX's bankruptcy team.
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💼 Why Was the Lawsuit Filed?
After its spectacular collapse in 2022, Ftx has been clawing back money from companies and individuals, citing “ill-gotten gains” and “improper transactions.”
FTX’s current administration claims that Binance unfairly benefited from certain deals made when Sam Bankman-Fried (SBF) was still running the show.
According to their claims, Binance acquired a big chunk of FTT tokens and other assets when it exited its 20% stake in FTX Global — a move they now argue was not above board.
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📄 What Are CZ’s Objections?
In a motion filed Monday in the Delaware bankruptcy court, CZ presented a sharp rebuttal:
🔹 No Jurisdiction: CZ resides in the United Arab Emirates (UAE), and argues the US court has no authority over him.
🔹 Cross-Border Nature: Most of the transactions were international, making US bankruptcy law irrelevant.
🔹 Legitimate Deal: Binance legally returned its FTX shares and received crypto assets in a valid trade.
🔹 Blame SBF, Not CZ: The FTX collapse was due to Sam Bankman-Fried’s actions, not his.
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🔍 The History Between CZ and FTX
It all started as a partnership — Binance was an early investor in FTX, but later sold its stake.
After the split, tensions flared between CZ and SBF, peaking during FTX’s downfall in late 2022.
FTX now accuses CZ of acting in “bad faith,” but CZ calls these claims baseless and politically motivated.
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⚖️ What’s Next?
All eyes are on the Delaware Court — if it agrees that it lacks jurisdiction, the case might be dismissed.
But if the court moves forward, CZ could be in for a long legal battle.
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🧩 Latest: Two CEOs, Two Different Fates
CZ has served 4 months in US prison for violating anti-money laundering laws. ✅
SBF is serving a 25-year sentence for massive fraud. ❌
