Changpeng Zhao, the former CEO of Binance, has filed a motion with a US bankruptcy court seeking to dismiss a $1.76 billion claim from the FTX bankruptcy estate.
Basis of the Lawsuit
In his petition, Zhao argues that his residence in the United Arab Emirates means he is outside the jurisdiction of Delaware. He emphasizes that the international nature of the transactions means US law does not apply to such cases.
International Aspect
Zhao stated that "the plaintiffs' allegations of fraudulent transfers unlawfully seek the application of bankruptcy law abroad." This statement highlights the international aspects and complexities related to cross-border transactions.
Context of the Situation
The lawsuit, filed by FTX Trust and FTX Digital Markets Ltd. in November 2024, is based on Sam Bankman-Fried's share buyback transactions from July 2021, alleging improper fund transfers by Binance and certain executives. Bankman-Fried was later convicted on fraud charges that impacted the crypto market.
Thus, Changpeng Zhao continues to challenge the validity of the FTX lawsuit, emphasizing its international nature and the prior regulatory landscape.
