-
Binance founder CZ wants the FTX lawsuit thrown out of court.
-
He argues Delaware courts have no authority over him.
-
The case involves a $1.76B crypto buyback deal from 2021.
-
CZ says he wasn’t directly involved in receiving the funds.
CZ Pushes Back on FTX’s Legal Claims
Changpeng Zhao, better known as CZ and the former CEO of Binance, is fighting back against a $1.8 billion lawsuit from the collapsed crypto exchange FTX. His legal team has filed a motion to dismiss the case, saying that the Delaware Bankruptcy Court doesn’t have jurisdiction over him.
The motion argues that Zhao, who lives in the United Arab Emirates, was improperly served with legal documents and has no real connection to Delaware.
The Lawsuit’s Origins
The lawsuit, filed by the FTX bankruptcy team in November 2024, claims that Binance received $1.76 billion in misused customer funds during a 2021 deal. At the time, FTX bought back a 20% stake that Binance held in the company, using a mix of FTT tokens and Binance’s own BUSD.
FTX says the money used in that deal came from customer accounts without permission, and they’re now trying to recover the funds to pay back those affected by the collapse.
Zhao’s Legal Arguments
Zhao’s lawyers say he wasn’t the one who received the funds and was only involved as a "nominal" party to the transaction. They also argue that the lawsuit is based on shaky legal grounds and that many of the claims are unclear or irrelevant.
Other Binance executives have also filed similar requests to dismiss the case.
A Complicated Legal History
This isn’t the only legal trouble involving the two crypto giants. The lawsuit also references a tweet from CZ in November 2022 that helped spark a flood of withdrawals from FTX, eventually leading to its downfall.
Zhao himself served a four-month sentence in the U.S. after admitting to violations of anti-money laundering rules, part of a larger $4.3 billion settlement with U.S. regulators.
