Binance CEO Seeks Dismissal of $1.76B FTX Lawsuit Over Jurisdiction
Binance CEO Changpeng Zhao has filed a motion in the Delaware Bankruptcy Court to dismiss the $1.76B FTX lawsuit filed by the FTX Trust over a 2021 share repurchase agreement. The FTX lawsuit alleges improper transfers from Sam Bankman-Fried to Binance. Zhao argues he is a UAE resident outside U.S. jurisdiction, that U.S. bankruptcy law has no extraterritorial reach, and that service of process was improper. Two former Binance executives made similar motions in July. This challenge from the Binance CEO will test cross-border jurisdictional limits in crypto litigation and could shape future clawback efforts, regulatory guidelines, and recovery processes in digital asset bankruptcies.
Neutral
By challenging jurisdiction, Binance CEO Changpeng Zhao aims to narrow legal risk rather than address core allegations. Such procedural motions rarely sway market sentiment heavily. In the short term, price of BNB is unlikely to react significantly, as traders await court outcomes. Over the long term, a successful dismissal could reduce Binance’s liability and support BNB’s stability, but this legal development primarily tests precedent rather than altering fundamentals. Therefore, the overall impact on the BNB market is neutral.