CZ argues US courts lack authority in $1.76B FTX lawsuit due to offshore ties. Defense says Zhao was not recipient of funds, calls FTX claims “absurd.” FTX also files against ex-Binance execs; both CZ and SBF have served prison time. Binance founder Changpeng Zhao (CZ) has filed a motion in US bankruptcy court to dismiss a $1.76 billion lawsuit brought by collapsed exchange FTX. CZ’s lawyers argue that the court lacks jurisdiction as he is a UAE resident and the questioned trades occurred outside the United States. The FTX lawsuit centers on a 2021 agreement in which Binance sold its stake in FTX. Plaintiffs allege that customer funds were used to repurchase these shares. Zhao’s legal team called these claims “absurd,” emphasizing that all transactions occurred through firms in Ireland, the Cayman Islands, and the British Virgin Islands. According to FTX, the share buyback was financed with Binance USD (BUSD) digital assets and FTT tokens. However, Zhao’s defense states he “was not the recipient” of these funds and acted solely as a “nominal party.” A separate claim involves CZ’s social media posts in November 2022, when he announced Binance would sell its FTT tokens. Plaintiffs argue this triggered a wave of customer withdrawals. Zhao maintains the exchange collapsed due to its “fraudulent nature,” not his comments. His lawyers added, “Even if Mr. Zhao’s posts contributed to the crisis, FTX had no right to exist in the first place,” comparing the case to blaming a whistleblower for exposing a Ponzi scheme. In May 2025, Binance had already filed to dismiss the lawsuit, calling it “legally invalid.” FTX has also brought claims against former Binance executives Samuel Lim and Dinghua Xiao. CZ served four months in prison last year for anti-money laundering violations. Meanwhile, former FTX CEO Sam Bankman-Fried is currently serving a 25-year sentence for fraud and is preparing an appeal.
