Former Binance CEO Changpeng Zhao has filed a motion in court to dismiss FTX's lawsuit seeking the return of $1.8 billion, alleging that the funds were transferred fraudulently.
Overview of the Lawsuit Against Changpeng Zhao
FTX filed a lawsuit against Zhao and other former Binance executives in November 2022, claiming that in 2021 FTX fraudulently transferred about $1.8 billion in cryptocurrency to Binance to buy back shares that the company had previously sold.
Zhao's Arguments Against the Lawsuit
Zhao stated that every key aspect of the share repurchase deal occurred outside the US and pointed out that Binance used cryptocurrency, namely Binance USD and FTX Token. In his statement, he added that the lawsuit 'nonsensically blames' him for the actions of Sam Bankman-Fried, the founder of FTX, who is currently serving a 25-year prison sentence for fraud.
Previous Efforts by Binance to Dismiss FTX's Claims
In May, Binance also sought to dismiss the lawsuit from FTX, arguing that it was 'legally deficient' and that FTX's collapse was a result of one of the largest corporate frauds in history.
The court proceedings continue to unfold, and it will be interesting to observe the next steps from both Zhao and FTX.
