{"id":40760,"date":"2025-08-06T13:46:46","date_gmt":"2025-08-06T13:46:46","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=40760"},"modified":"2025-08-06T13:46:46","modified_gmt":"2025-08-06T13:46:46","slug":"cz-seeks-dismissal-of-nonsensical-1-76b-ftx-clawback-lawsuit","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=40760","title":{"rendered":"CZ Seeks Dismissal Of \u201cNonsensical\u201d $1.76B FTX Clawback Lawsuit"},"content":{"rendered":"<div>\n<p><span style=\"font-weight: 400\">Former Binance CEO Changpeng \u2018CZ\u2019 Zhao has filed a motion to dismiss a lawsuit from FTX that aims to recover nearly $1.8 billion.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">Sam Bankman-Fried\u2019s FTX filed a lawsuit against its competitor Binance and CZ on 10 November 2024.<\/span><a href=\"https:\/\/x.com\/sunil_trades\/status\/1855879016332284378\/photo\/1\" rel=\"nofollow\" target=\"_blank\"><span style=\"font-weight: 400\"> The lawsuit<\/span><\/a><span style=\"font-weight: 400\"> seeks damages, accusing Binance of playing a key role in it\u2019s downfall.<\/span><\/p>\n<p><span style=\"font-weight: 400\">However, according to a 4 August 2025<\/span><a href=\"https:\/\/www.bloomberglaw.com\/public\/desktop\/document\/FTXDigitalMarketsLtdetalvBinanceHoldingsLimitedetalDocketNo124ap5?doc_id=X3HKR8RCNB08QIRDH921NDGND07\" rel=\"nofollow\" target=\"_blank\"><span style=\"font-weight: 400\"> filing on Zhao\u2019s behalf<\/span><\/a><span style=\"font-weight: 400\">, \u201cPlaintiffs nonsensically blame Mr Zhao and others for Mr Bankman-Fried\u2019s failings.\u201d<\/span><\/p>\n<p><span style=\"font-weight: 400\">Zhao calls the claim \u201clegally unfounded\u201d and \u201coutright incoherent.\u201d His legal team insisted that \u201cwhile\u00a0 Plaintiffs\u00a0 and\u00a0 Binance\u00a0 were\u00a0 rivals,\u00a0 they were also briefly business partners when the Binance Defendants owned about a 20% stake in FTX Trading. But Zhao and Bankman-Fried could not work together, and the parties separated.\u201d<\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><img decoding=\"async\" src=\"https:\/\/s.w.org\/images\/core\/emoji\/16.0.1\/72x72\/1f6a8.png\" alt=\"\ud83d\udea8\" class=\"wp-smiley\" style=\"height: 1em; max-height: 1em;\"> BREAKING: Binance co-founder CZ wants out of the $1.8B FTX lawsuit.<\/p>\n<p>He just told the US court it has no jurisdiction over him because he lives in the UAE and the case is about offshore deals.<\/p>\n<p>If this holds, CZ might walk away untouched. <a href=\"https:\/\/t.co\/wBdQw7YRdb\" rel=\"nofollow\" target=\"_blank\">pic.twitter.com\/wBdQw7YRdb<\/a><\/p>\n<p>\u2014 Crypto Patel (@CryptoPatel) <a href=\"https:\/\/twitter.com\/CryptoPatel\/status\/1952935159218774403?ref_src=twsrc%5Etfw\" rel=\"nofollow\" target=\"_blank\">August 6, 2025<\/a><\/p>\n<\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong>Explore: <a href=\"https:\/\/99bitcoins.com\/news\/ftx-declares-war-on-binance-and-zhao-for-triggering-a-liquidity-crises\/\">FTX Declares War On Binance And Zhao For Triggering A Liquidity Crises<\/a><\/strong><\/p>\n<h2><strong>FTX Lacks Jurisdiction Over UAE Citizen CZ <\/strong><\/h2>\n<p><span style=\"font-weight: 400\">Zhao\u2019s legal team\u2019s primary argument is that the US court lacks jurisdiction over Zhao, who is a citizen and resident of the United Arab Emirates (UAE). The motion contends that the case is far removed from the US, as the transactions and entities involved were all based offshore. <\/span><\/p>\n<p><span style=\"font-weight: 400\">Zhao\u2019s lawyers also asserted that he was not a direct recipient of the funds in question.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">The legal team described CZ as \u201cnominal counterparty\u201d in the transaction. This essentially means that he did not have personal possession or control over the crypto that was exchanged. The deal involved Binance (BUSD) and FTX token (FTT). <\/span><\/p>\n<p><span style=\"font-weight: 400\">Meanwhile, FTX, now managed by a team working t repay creditors, alleges that the 2021 share buyback was funded with customer money, constituting a fraudulent transfer. <\/span><\/p>\n<p><strong><span data-preserver-spaces=\"true\">DISCOVER:\u00a0<\/span><a class=\"general-link\" href=\"https:\/\/99bitcoins.com\/cryptocurrency\/best-meme-coin-icos\/\" target=\"_blank\" rel=\"nofollow noopener sponsored\"><span data-preserver-spaces=\"true\">Best Meme Coin ICOs to Invest in 2025<\/span><\/a><\/strong><\/p>\n<h2 class=\"nnbtc-header__title\">FTX Declares War On Binance And Zhao For Triggering A Liquidity Crises<\/h2>\n<p>FTX was once one of the largest cryptocurrency exchanges in the world, but it filed for bankruptcy in November 2022.\u00a0Revelations of financial mismanagement and fraud remains the main reason behind its collapse.<\/p>\n<p>Importantly, the company\u2019s downfall led to billions of dollars in losses for investors and shaking public confidence in digital assets.<\/p>\n<p>The lawsuit accused Binance and its former CEO Changpeng Zhao of engaging in actions that exacerbated FTX\u2019s financial instability.<\/p>\n<p>Specifically, FTX claims that Binance\u2019s decision to sell off a large portion of its holdings in FTT\u2014the native token of FTX\u2014triggered a liquidity crisis that ultimately led to FTX\u2019s collapse. In early November 2022, Zhao publicly announced that Binance would liquidate its entire position in FTT due to \u201crecent revelations\u201d about FTX\u2019s financial health.<\/p>\n<p><strong>Related :\u00a0<a href=\"https:\/\/99bitcoins.com\/news\/former-ftx-exec-nishad-singh-gets-no-jail-time-ordered-to-forfeit-11-billion\/\">Former FTX Exec Nishad Singh Gets No Jail Time, Ordered To Forfeit $11 Billion<\/a><\/strong><\/p>\n<p><span style=\"font-weight: 400\">    <\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h2 class=\"nnbtc-key-takeaways__title\">Key Takeaways<\/h2>\n<p><span style=\"font-weight: 400\">    <\/p>\n<ul class=\"nnbtc-key-takeaways__list\">\n        <\/ul>\n<p><\/span><\/p>\n<p><span style=\"font-weight: 400\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         CZ<\/li>\n<p><\/span><span style=\"font-weight: 400\">\u2019s legal team\u2019s primary argument is that the US court lacks jurisdiction over Zhao. He is a citizen and resident of the UAE.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\"><br \/>\n    <\/span><\/p>\n<p><span style=\"font-weight: 400\">    <\/p>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         <\/li>\n<p><\/span><span style=\"font-weight: 400\">Zhao recently completed a four-month prison sentence. He pleaded guilty to violations of US anti-money laundering laws<\/span><span style=\"font-weight: 400\">.<\/span><\/p>\n<p><span style=\"font-weight: 400\"><br \/>\n    <\/span><\/p>\n<p><span style=\"font-weight: 400\"><br \/>\n    <\/span><\/p>\n<p><span style=\"font-weight: 400\">    <\/span><\/p>\n<\/div>\n<p>    <\/span><\/p>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/altcoins\/cz-seeks-dismissal-of-nonsensical-1-76b-ftx-clawback-lawsuit\/\">CZ Seeks Dismissal Of \u201cNonsensical\u201d $1.76B FTX Clawback Lawsuit<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Former Binance CEO Changpeng \u2018CZ\u2019 Zhao has filed a motion to dismiss a lawsuit from FTX that aims to recover nearly $1.8 billion.\u00a0 Sam Bankman-Fried\u2019s FTX filed a lawsuit against its competitor Binance and CZ on 10 November 2024. The lawsuit seeks damages, accusing Binance of playing a key role in it\u2019s downfall. However, according [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-40760","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40760","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=40760"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40760\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40760"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40760"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40760"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}