Changpeng Zhao, the founder of Binance, is seeking to dismiss a legal action worth $1.76 billion initiated by FTX in its bankruptcy proceedings, according to recent reports.
In early August 2025, former Binance CEO Changpeng Zhao (CZ) filed a motion to dismiss a $1.76–$1.8 billion lawsuit brought by the FTX bankruptcy estate. The lawsuit, filed in November 2024, concerns a July 2021 share repurchase deal with FTX founder Sam Bankman-Fried.
Zhao's motion, submitted to the US Bankruptcy Court for the District of Delaware, argues that the court does not have personal jurisdiction over him due to improper and ineffective service. He resides in the United Arab Emirates and contends that the disputed transaction involved offshore entities in the Cayman Islands, British Virgin Islands, and Ireland. Zhao also claims that US bankruptcy laws do not definitively extend to foreign transfers, making the case procedurally flawed.
The lawsuit was initiated by the FTX trust and FTX Digital Markets to recover funds tied to the share buyback where FTX repurchased Binance’s 20% stake. FTX alleges that Binance's sales of FTT tokens triggered FTX's 2022 liquidity crisis, funded by customer deposits. However, Zhao denies these claims as unfounded.
The former CEO's legal defense focuses on contesting US jurisdiction due to the offshore nature of the transaction. If successful, this case could establish important precedent on jurisdiction and liability in cross-border cryptocurrency disputes. Other Binance executives have also filed similar motions seeking dismissal.
At present, the Delaware court has not yet ruled on Zhao's motion, so the future of the lawsuit remains uncertain. The case has been making headlines due to its potential implications for the cryptocurrency industry and the ongoing legal battle between Binance and FTX.
In a separate incident, a 63-year-old woman was arrested for stealing bank information, printing fake IDs, and draining $26,000 from bank accounts across three states. Meanwhile, a man accused of kidnapping and torturing a victim for $100,000,000 in Bitcoin (BTC) has been released on bond.
Elsewhere, a customer lost $13,000 due to bank fraud, and Wells Fargo refused to reimburse them. Approximately 200,000 victims have been identified due to malware disguised as legitimate apps that cracked bank accounts, as reported by CIFAS on August 3, 2025.
[1] Binance CEO Files Motion to Dismiss FTX Lawsuit Over 2021 Share Buyback Deal, CoinDesk, August 2025. [2] FTX Sues Binance, Changpeng Zhao, and Others for $1.76 Billion, Cointelegraph, November 2024. [3] Binance CEO Changpeng Zhao Responds to FTX Lawsuit, Decrypt, November 2024. [4] FTX Alleges Binance's Sales of FTT Tokens Triggered 2022 Liquidity Crisis, CoinDesk, November 2024. [5] Delaware Court Hears Binance CEO's Motion to Dismiss FTX Lawsuit, The Block, August 2025.
- The ongoing legal dispute between Binance and FTX, centered around a 2021 share buyback deal and the involvement of cryptocurrency and altcoins in finance and business, could establish significant precedent on jurisdiction and liability in cross-border cryptocurrency disputes.
- In a different context within the realm of finance and business, a recent case involved a woman being arrested for stealing bank information, printing fake IDs, and draining funds from various bank accounts using cryptocurrency, exposing vulnerabilities in traditional and digital financial systems.
