CZ Seeks to Toss $1.8B FTX Lawsuit Citing UAE Jurisdiction
Binance co-founder Changpeng Zhao (CZ) has filed a motion in the U.S. Bankruptcy Court in Delaware to dismiss the $1.8 billion FTX lawsuit, arguing the court lacks jurisdiction. CZ resides in the UAE and says the 2021 equity buyback with FTX was conducted solely through entities in Ireland, the Cayman Islands and the British Virgin Islands. His legal team maintains he was only a nominal counterparty and never controlled or received FTT or BUSD tokens. Former Binance executives Samuel Lim and Dinghua Xiao have also moved to dismiss their involvement. Meanwhile, the FTX trustee has returned about $6.2 billion to creditors in two distribution rounds, with the next batch scheduled for September 30, 2025. Crypto traders should watch how the court’s jurisdiction ruling could affect the FTX lawsuit and market confidence.
Neutral
The motion to dismiss the FTX lawsuit introduces legal uncertainty but does not immediately alter FTT or BUSD fundamentals. The case outcome could ease regulatory pressure if the court accepts the jurisdiction argument, potentially supporting token sentiment. However, the protracted legal process and ongoing asset distributions by the trustee suggest limited short-term price impact, making the overall effect neutral.