Binance co-founder Changpeng Zhao has filed a motion to dismiss a $1.76 billion lawsuit from FTX, asserting a lack of jurisdiction in US courts.
Details of the FTX Lawsuit
The lawsuit, filed in the Delaware U.S. Bankruptcy Court, aims to recover $1.76 billion related to Binance's prior equity holdings in FTX. The transactions in question involved funds from Alameda Ltd., based in the British Virgin Islands.
CZ's Arguments
Changpeng Zhao argues that neither he nor Binance were primary parties to the disputed transactions, emphasizing that they occurred outside U.S. jurisdiction. He described himself as 'only a nominal counterparty' in the transaction.
Implications and Conclusions
The court proceedings may influence international financial regulations and set precedents for similar cryptocurrency-related lawsuits. Historically, jurisdictional issues have often hampered similar claims involving cross-border assets.
The outcome of this case will be a significant test for international financial norms and future cryptocurrency regulations.
