Binance founder Changpeng "CZ" Zhao is asking a Delaware bankruptcy court to dismiss a $1.76 billion clawback lawsuit filed by FTX. CZ's argument is that the court lacks jurisdiction over him since he's a resident of the United Arab Emirates (UAE) and the transactions in question were conducted by offshore entities .
Key Points in CZ's Defense
- *Jurisdiction Challenge*: CZ claims the Delaware court doesn't have jurisdiction over him due to his UAE residency.
- *Offshore Transactions*: The transactions were carried out through foreign entities in the British Virgin Islands, Ireland, and the Cayman Islands.
- *Brief Business Partnership*: CZ states Binance and FTX were briefly business partners, with Binance once holding a 20% stake in FTX before parting ways.
Background on the Lawsuit
FTX filed the lawsuit against Binance and CZ in 2024, aiming to recover $1.76 billion related to a 2021 share repurchase agreement. FTX alleges the transaction
[8/6, 1:10 PM] Meta AI: Binance founder Changpeng "CZ" Zhao is asking a Delaware bankruptcy court to dismiss a $1.76 billion clawback lawsuit filed by FTX. CZ's argument is that the court lacks jurisdiction over him since he's a resident of the United Arab Emirates (UAE) and the transactions in question were conducted by offshore entities .
Key Points in CZ's Defense
- *Jurisdiction Challenge*: CZ claims the Delaware court doesn't have jurisdiction over him due to his UAE residency.
- *Offshore Transactions*: The transactions were carried out through foreign entities in the British Virgin Islands, Ireland, and the Cayman Islands.
- *Brief Business Partnership*: CZ states Binance and FTX were briefly business partners, with Binance once holding a 20% stake in FTX before parting ways.
Background on the Lawsuit
FTX filed the lawsuit against Binance and CZ in 2024, aiming to recover $1.76 billion related to a 2021 share repurchase agreement. FTX alleges the transaction was improper, while CZ argues U.S. bankruptcy law doesn't apply to these offshore dealings .
How this plays out could impact international legal precedents in crypto and affect market sentiment for cryptocurrencies linked to FTX and Binance.
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