Binance Founder CZ Wants $1.8B FTX Lawsuit Dropped

Former Binance CEO Changpeng Zhao has requested the court to dismiss $1.8 billion FTX’s lawsuit over a deal the exchange claims was funded by misused assets to buy back its shares.

Zhao Challenges FTX Lawsuit

Changpeng Zhao is asking a Delaware court to throw out FTX’s $1.8 billion lawsuit over a 2021 share buyback, which FTX says used stolen funds.

Zhao defends himself by saying FTX should blame Sam Bankman-Fried, not him. Bankman-Fried is serving 25 years for fraud.

He also states that the deal happened outside the U.S.A., as the Binance entities are based in Ireland, the Cayman Islands, and the British Virgin Islands, making the lawsuit invalid.

His lawyers also argue that the plaintiffs have not claimed to have received or had control over the exchanged cryptocurrency.

Zhao Denies Role in FTX Collapse

Changpeng Zhao has also denied claims that his X post regarding FTX and Binance’s sale of FTT tokens was a calculated move to incite customer withdrawals, leading to the collapse of the crypto exchange.

In his defence, his lawyers argued that, even if his social media post contributed to the downfall of FTX, the crypto exchange had no legal right to engage in fraud. They likened Zhao’s actions to those of a whistleblower, arguing that holding him liable would be like blaming someone for exposing a Ponzi scheme.

Zhao spent four months in prison last year after admitting to money laundering in a separate case. Bankman-Fried got 25 years in March 2024 for fraud.

Meanwhile the price of BNB has jumped 2% in the last 24 hours, trading at $767 with the daily trading volume sliding slightly top $1.94 billion. the market capitalization now stands at $106.7 billion.