The co-founder of Binance CZ moves to reject the FTX trial of $ 1.8 billion (report)

Changpeng Zhao (CZ) filed a request for a rejection of a trial of $ 1.76 billion brought against him by the FTX Faillifrupt Trust.

He says that the court has no legal authority over him because he lives in the United Arab Emirates (water).

Defense of the CZ

According to a Bloomberg report, his legal team submitted the request on Monday to the American District Court of Delaware district, saying that the accusations are not outside the scope of the court.

“Complaints have so far been withdrawn from Delaware and even the United States that the statutes in question, which lack extraterritorial demand, do not even apply,” his lawyers wrote in the file.

Made in November 2024, the trial accused Zhao, Binance, and several former leaders of receiving billions of dollars in funds which were wrongly by the founder of the FTX, Sam Bankman Fried (SBF). It focuses on a July 2021 agreement where the exchange sold its equity in international entities and based in the United States of FTX. According to the Trust, Binance has held a 20% stake in the international unit of FTX and 18.4% in the American branch.

Judicial files show that Alameda Ltd, a company registered in the British Virgin Islands, transferred the FTX funds. On the other hand, the binance entities involved were recorded in Ireland, the Cayman Islands and the British Virgin Islands. CZ’s legal team maintains that this makes the foreign transaction and outside the scope of American bankruptcy laws. They also claim that he was a “nominal counterpart” in the agreement, which means that he was not deeply involved in the process.

Zhao’s submission also described the relationship between FTX and Binance as only temporary. They ended their partnership due to personal disagreements, after which Binance’s equity in Bankman Fried’s affairs were exchanged for cryptocurrency.

The Crypto entrepreneur says that the trial blame him unfairly and Binance for the collapse of FTX, which he described came as a fault of SBF. He also argued that the legal documents service through American lawyers is not valid under bankruptcy law when the defendant lives abroad. His team says that confidence is trying to stretch their assertions beyond American borders in a way that is not supported by law. They say that the allegations of fraud do not comply with the standards required for protection under federal rules related to securities contracts.

The former leaders of Binance also seek a dismissal

This development follows similar motions last month by the former leaders of Binance Samuel Wenjun Lim and Dinghua Xiao, who are also appointed in the FTX combination and seek to be withdrawn from the case.

CZ completed a four-month prison sentence in September of last year after pleading guilty to anti-money money-winning violations. Meanwhile, Sam Bankman Fried purge 25 years for fraud and conspiracy.

Elsewhere, Defunct Exchange has announced that it would start to distribute the next batch of credit complaints on September 30. In August 2025, he returned about $ 6.2 billion to former customers of two major towers.