Legal Battle Heats Up: Zhao Challenges FTX’s $1.76 Billion Claim
Changpeng Zhao, founder and former CEO of Binance, has requested a U.S. court to dismiss a lawsuit filed by the FTX bankruptcy estate. In this case, FTX is seeking to recover $1.76 billion, alleging that Binance unjustly obtained these funds.
The lawsuit, initially filed in November 2024, concerns a 2021 transaction when Binance sold its approximately 20% stake in FTX. In return, Binance received cryptocurrencies, including the FTT token. FTX claims that this payment was improper and that the funds must be returned.
In the filing submitted Monday, Zhao stated that he resides in the United Arab Emirates and therefore the Delaware court has no jurisdiction over him. He also argued that the transactions took place internationally and that U.S. law does not apply in this case.
