Binance’s CZ Moves to Dismiss $1.8B FTX Lawsuit
Binance founder Changpeng Zhao has filed a motion in Delaware bankruptcy court to dismiss a $1.8B FTX lawsuit, citing improper service and lack of jurisdiction. He argues the FTX lawsuit relies on extraterritorial claims and notes that all transactions were processed through Binance entities in Ireland, the Cayman Islands, and the BVI. CZ asserts he was only a nominal signatory, never holding control of the transferred crypto, and denies his X posts selling FTT caused FTX’s collapse. If dismissed, the suit could set a key precedent on Delaware’s authority over foreign crypto executives and cross-border bankruptcy claims. Traders should monitor the case for its implications on Binance’s legal exposure, potential asset recovery practices, and broader crypto litigation risks.
Bearish
Legal action heightens uncertainty around Binance’s regulatory and financial liabilities, which may weigh on BNB trading sentiment. In the short term, the ongoing FTX lawsuit could trigger volatility as traders price in potential outcomes. Long term, a favorable dismissal would reduce legal risk, but the precedent on jurisdiction may invite further cross-border claims, sustaining cautious market sentiment toward Binance’s token.