CZ information movement to dismiss FTX’s $1.7B lawsuit, arguing lack of jurisdiction and calling claims legally and factually groundless.
Changpeng “CZ” Zhao, the co-founder and former CEO of Binance, has filed a movement to dismiss a lawsuit introduced towards him by the chapter property of FTX. The movement was filed on August 4, 2025, and challenges each the authorized course of and the claims made by FTX.
FTX Sues CZ, Alleges Position in $1.7B Share Repurchase & Collapse
The lawsuit was initiated in November 2024, when the chapter property of FTX sued Binance and CZ. The case alleges that Alameda Analysis, the sister firm of FTX, wrongly funded a share repurchase of 1.7 billion organized in 2021. FTX claims CZ had gained entry to the funds in an unlawful switch because it put it.
Moreover, the case additionally alleges that CZ contributed to the instability of FTX, which failed in 2022. In keeping with the chapter property, sure tweets and different public statements that CZ made precipitated concern concerning the monetary place of FTX. FTX states that the actions contributed to the collapse of the corporate.
CZ is combating again now. In his movement, he claims that the Delaware court docket lacks any jurisdiction in listening to the case. In keeping with him, the swimsuit was improperly served. CZ relies within the United Arab Emirates, and the authorized discover was accomplished by his attorneys primarily based in the USA. His attorneys declare that such a process will not be authorized within the context of worldwide regulation.
As well as, the movement clarifies that almost all of the foremost firms and people within the case should not headquartered within the U.S. Alameda is included within the British Virgin Islands, and Binance entities are in Eire and the Cayman Islands. As a consequence of this, the attorneys of CZ state that U.S. legal guidelines, which FTX employs in its case, should not imagined to be utilized.
Associated Studying: Binance Urges Courtroom to Dismiss $1.76 Billion FTX Lawsuit
CZ Denies FTX Lawsuit Allegations, Calls Case Baseless
Moreover all these authorized claims, CZ can be denying the first arguments of the swimsuit. In keeping with him the case is poor and baseless. As per his authorized grievance, Binance and FTX had been enterprise companions solely briefly and terminated the connection lengthy earlier than the collapse of FTX.
CZ additionally says that Binance’s resolution to promote its FTT tokens in 2022 had nothing to do with FTX’s downfall. He states that the sale occurred a couple of yr in the past for the reason that partnership led to its termination.
That is CZ, and FTX will not be the primary time clashing. Binance was summoned in 2022 in a British court docket to testify towards FTX. FTX sued CZ once more in 2023 over his social media posts. They stated the posts harmed the corporate’s picture. Sam Bankman-Fried additionally blamed CZ for the liquidity disaster that shut down FTX.
Because the inception of the current case, the attorneys of FTX haven’t achieved a lot success in court docket. In keeping with the attorneys of CZ, now FTX makes an attempt to change the blame to its leaders as an alternative of others.
To sum all of it up, CZ is asking the court docket to dismiss the case, claiming it’s legally flawed and primarily based on false details. The case has not but been concluded, and the court docket should now decide if the claims might proceed.