Changpeng Zhao, former CEO of Binance, has filed a motion to dismiss a $1.76 billion claim from FTX Trust, citing the absence of U.S. jurisdiction.
Discussion of FTX Trust's Claim
Changpeng Zhao filed a motion in Delaware concerning a $1.76 billion claim by FTX Trust. The filing highlights that the case pertains to a share buyback transaction between Binance and FTX conducted in 2021, arguing that the parties involved have no relation to U.S. jurisdiction. Zhao contends that applicable U.S. laws do not pertain to this case.
Response of Legal Experts
Legal experts are closely monitoring this case as it could set a precedent regarding jurisdiction in cryptocurrency disputes. Concerns have been raised that the outcome may influence other transactions and disputes involving international cryptocurrency operations.
Impact on the Crypto Industry
Zhao's motion challenges the application of U.S. law in international transactions, potentially affecting legal strategies and frameworks used by crypto exchanges worldwide. The implications could impact financial recovery processes in bankruptcy cases related to international trades.
Zhao's case highlights the complexities of legal issues within the crypto industry and the potential changes in international jurisdictional practices that may arise in the future.
