Binance founder Changpeng Zhao, also known as CZ, has asked a US bankruptcy court to dismiss a $1.76 billion lawsuit filed by FTX's bankruptcy estate. The lawsuit claims that Binance and its executives improperly received funds when they divested their ownership stakes in FTX.
*Key Points of the Lawsuit:*
- *Allegations*: FTX alleges that Binance and its executives received $1.76 billion in funds that were improperly transferred by Sam Bankman-Fried, FTX's convicted founder.
- *CZ's Defense*: Zhao argues that the lawsuit doesn't belong in a US court because he's a resident of the United Arab Emirates and the transactions in question were offshore.
- *Extraterritorial Claims*: CZ's lawyers claim that US bankruptcy laws don't cover foreign transfers, especially those related to securities contracts.
- *Previous Ruling*: Two former Binance executives, Samuel Wenjun Lim and Dinghua Xiao, have also filed motions to dismiss the lawsuit ¹ ².
In a separate development, the US Securities and Exchange Commission (SEC) has dropped its lawsuit against Binance and CZ, ending a major regulatory action. The SEC had accused Binance of artificially inflating trading volumes, diverting customer funds, and misleading inves
