Changpeng Zhao Seeks Dismissal of FTX $1.76B Claim

Changpeng Zhao, former CEO of Binance, filed a motion in Delaware to dismiss a $1.76 billion claim by the FTX Trust, citing non-U.S. jurisdiction.

The filing questions the jurisdiction of U.S. law over the case, potentially influencing legal outcomes in cross-border crypto transactions.

Changpeng Zhao, once at the helm of Binance, submitted the motion regarding a $1.76 billion claim by FTX Trust. His legal team argues that the U.S. lacks jurisdiction because the involved parties are not based in the U.S. The funds in question originate from a 2021 transaction where Binance divested its FTX equity before FTX’s collapse. Zhao’s counsel emphasized the lack of application of U.S. statutes in this context.

The motion challenges the jurisdiction under U.S. law, arguing transactions were between overseas entities. Legal experts are watching the case closely, as it might set a precedent for jurisdictional reach in cryptocurrency disputes. The filing’s outcome could disrupt current and future cross-border financial cases.

Beyond challenging jurisdiction, Zhao’s move might stimulate discussions about the applicability and reach of U.S. law in global cryptocurrency operations. The case may affect legal strategies and frameworks used by crypto exchanges worldwide. Financial recovery processes of bankruptcies involving international trades could be impacted.

In the longer term, Zhao’s motion could influence regulations and cross-border compliance strategies in the crypto industry. Previous cases revealed how jurisdictional matters delay resolutions, showcasing the complexities of handling such disputes. The focus on overseas transactions may hint at future legal confrontations in crypto’s rapidly evolving landscape.

For a detailed article on this topic, visit Changpeng Zhao challenges FTX’s $1.76B claim, citing non-U.S. jurisdiction.