Binance founder Changpeng Zhao (CZ) is pushing hard to get a $1.8 billion lawsuit from FTX thrown out.
The case comes from a 2021 deal where FTX bought back shares from Binance. Zhao says the U.S. court can’t touch him since he lives in the UAE and the deal happened outside America. This big crypto fight is making waves everywhere.
Back in 2021, FTX paid Binance about $1.76 billion in FTT tokens and BUSD stablecoin to buy back shares. Now, FTX’s bankruptcy team claims this deal was shady, saying Alameda Research, a broke company linked to FTX, used customer money to pay for it. After FTX crashed in 2022, they filed this lawsuit to get the money back for creditors.
Why Zhao Wants the Case Dropped
Zhao’s lawyers argue the U.S. court has no power over him. He lives in the UAE, and the deal involved companies in places like the British Virgin Islands. They also say Zhao was just a small part of the deal, not the one cashing out. It’s a clever move to avoid this huge claim.
FTX’s team blames Sam Bankman-Fried, their former boss, who’s now convicted of fraud. They say Alameda used customer funds to pay Binance, which is illegal. FTX wants that $1.8 billion back to help people who lost money when the company went under.
Zhao has faced legal cases before. In 2023, he confessed to money laundering charges in the U.S., served four months in jail, and stepped down as Binance CEO after a $4.3 billion settlement. This Changpeng Zhao lawsuit is another challenge for him, but he’s still a major name in crypto.
Well, this Changpeng Zhao lawsuit could change how global crypto deals are handled. If Zhao gets the case dismissed, it might show how tough it is to go after big crypto players. If he loses, Binance could face more problems. The crypto world is watching closely.
If the court tosses the case, Zhao could walk away clean. But if it goes forward, Binance might take a big hit. This fight shows how wild and tricky the crypto world can be.
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