Changpeng Zhao, co-founder of Binance, has filed a request with the Delaware Bankruptcy Court to dismiss a $1.8 billion lawsuit from FTX. He cites jurisdictional issues due to his residency in the UAE.
CZ's Request to Dismiss FTX Lawsuit
CZ argues that the Delaware court lacks jurisdiction as he resides in the UAE and the transactions in question were conducted by offshore entities.
> Changpeng Zhao (CZ), co-founder of Binance, stated: "The U.S. court lacks jurisdiction over me since I reside in the UAE and the transactions in question were conducted by offshore entities."
Impact on Cryptocurrency Market
The lawsuit aims to retrieve between $1.76 billion and $1.8 billion related to Binance's earlier equity in FTX. Market sentiment around FTT and BNB tokens may see downturns, although no direct impact on token liquidity has emerged.
Legal Perspectives and Future
This case could set precedents in how courts handle global crypto asset recoveries and the limits of U.S. law overseas. Experts suggest a decision in CZ's favor may shift the regulatory landscape, influencing future litigations involving global entities.
CZ's request to dismiss the FTX lawsuit highlights the complex legal questions of jurisdictional interactions in the cryptocurrency sphere. The outcomes could significantly affect future legal proceedings and regulations in international practice.
