{"id":40867,"date":"2025-08-07T00:01:40","date_gmt":"2025-08-07T00:01:40","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=40867"},"modified":"2025-08-07T00:01:40","modified_gmt":"2025-08-07T00:01:40","slug":"binance-former-leader-seeks-quick-exit-from-1-8-billion-ftx-lawsuit","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=40867","title":{"rendered":"Binance Former Leader Seeks Quick Exit From $1.8 Billion FTX Lawsuit"},"content":{"rendered":"
\n

Former Binance CEO Changpeng \u201cCZ\u201d Zhao has moved to shake off a $1.76 billion clawback bid from the now-bankrupt FTX<\/a> trust. It\u2019s a bold opening move. Based on reports, he argues the case should never have landed in a Delaware court.<\/p>\n

Challenge To Delaware Jurisdiction<\/h2>\n

According to a report<\/a>, Zhao insists he lives in the United Arab Emirates and has no real ties to Delaware. He points out that the complaint doesn\u2019t show he\u2019s \u201cat home\u201d there.<\/p>\n

His lawyers say the US Bankruptcy Court for the District of Delaware lacks power to decide this fight. If the judge agrees, FTX may have to find a new venue or refile elsewhere.<\/p>\n

Those jurisdiction rules matter when you\u2019re chasing a humongous amount of money like $1.76 billion. FTX says the money flowed from a share purchase deal in 2021.<\/p>\n

Binance snapped up those shares just as FTX was heading toward insolvency. Zhao\u2019s team calls that claim weak. They claim it falls outside US laws because the deal and his actions mostly took place overseas.<\/p>\n

\"\"<\/p>\n

Fight Over Fraud Claims<\/h2>\n

Based on the motion<\/a> filed on Monday, Zhao\u2019s side also questions whether US fraud rules can stretch beyond America\u2019s borders.<\/p>\n

He argues that the regulations at issue don\u2019t apply to someone living in the UAE. Reports have disclosed that he challenged what lawyers call \u201cconstructive fraud\u201d counts.<\/p>\n

Those counts hinge on federal definitions tied to securities contracts, Zhao\u2019s filing says.<\/p>\n

<\/p>\n

FTX first sued Binance and Zhao back in November 2024. At that time, a Binance spokesperson blasted the effort as \u201cmeritless.\u201d<\/p>\n

They said the trust was trying to shift blame for FTX\u2019s collapse onto Binance and its founder.<\/p>\n

Binance already filed a similar motion to dismiss in May. That earlier paper noted FTX blamed Binance for \u201cpervasive malfeasance\u201d by Sam Bankman-Fried.<\/p>\n

Weighing The Prior Motions<\/p>\n

That May motion raised many of the same points now front and center. It highlighted that FTX\u2019s lawyers pointed to emails and wire transfers routed through US banks.<\/p>\n

Binance replied that those links aren\u2019t enough. They argued simple financial messages don\u2019t create a business \u201cpresence\u201d in Delaware.<\/p>\n

Sam Bankman-Fried is serving a 25-year sentence<\/a> for fraud and conspiracy. Whatever happens next, this fight over venue and jurisdiction will set the stage for a long legal battle over who pays for FTX\u2019s losses.<\/p>\n

Zhao himself served four months<\/a> in prison after pleading guilty to US anti-money laundering charges.<\/p>\n

The Pushback<\/p>\n

Meanwhile, FTX trust attorneys are expected to push back. They\u2019ll stress that billions of dollars moved through US accounts. They\u2019ll say those wires and phone calls establish jurisdiction under longstanding rules.<\/p>\n

The court\u2019s decision on this procedural step could stretch on for months.<\/p>\n

Featured image from Horacio Villalobos Corbis\/Getty Images, chart from TradingView<\/em><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Former Binance CEO Changpeng \u201cCZ\u201d Zhao has moved to shake off a $1.76 billion clawback bid from the now-bankrupt FTX trust. It\u2019s a bold opening move. Based on reports, he argues the case should never have landed in a Delaware court. Challenge To Delaware Jurisdiction According to a report, Zhao insists he lives in the […]<\/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-40867","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\/40867","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=40867"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/40867\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=40867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=40867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=40867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}