Zhao Changpeng Seeks Dismissal of $1.76B Claim in U.S. Court

Zhao Changpeng has filed to dismiss a $1.76 billion claim by the FTX trust in Delaware, arguing lack of U.S. jurisdiction due to his UAE residency.

The legal dispute highlights jurisdiction challenges in cross-border bankruptcy cases, potentially affecting asset recovery strategies and the broader perception of cryptocurrency exchange accountability.

Zhao’s $1.76 Billion Jurisdictional Challenge

Zhao Changpeng has requested dismissal of a $1.76 billion claim filed by the FTX trust, arguing that jurisdictional proof is lacking in Delaware. He claims that the U.S. laws involved have no extraterritorial applicability. As Zhao stated, “I am a resident of the UAE and the trust cannot prove its jurisdiction in Delaware. The related claims have little connection to the U.S., and U.S. bankruptcy law has no extraterritorial applicability.” The trust aims to recover funds it says were improperly transferred to Binance by Sam Bankman-Fried. Zhao, a resident of the UAE, emphasizes this lack of jurisdiction. Previous efforts by FTX for asset recovery highlight the complexities of cross-border crypto transactions.

Immediate implications include potential delays in the FTX bankruptcy proceedings. Furthermore, serving U.S. lawyers overseas may invalidate complaints, according to Zhao’s assertions. The case could shape future handling of international crypto disputes concerning fund transfers. The dismissal motion claims U.S. bankruptcy law’s limits and seeks relief from an improper jurisdictional reach. Reactions to Zhao’s response vary.

While the court’s decision remains pending, Zhao’s approach raises questions about jurisdiction and international law in crypto exchanges. Silence from major stakeholders adds uncertainty to the resolution’s timeline. The bullish trajectory for BNB and FTT despite the legal turmoil shows investor optimism.

Market Data Reflects Investor Sentiment

Did you know? Mastering jurisdiction in international crypto lawsuits, as seen here, defines the legal landscape of future global asset recoveries.

BNB (BNB) currently trades at $761.83, with a market cap of $106.11 billion and 2.85% market dominance. The 24-hour trading volume registers at $2.02 billion, marking a 5.01% change. Over the past 90 days, BNB’s price surged by 23.69%, according to CoinMarketCap data.

Research from Coincu suggests Zhao’s legal strategy might refine international crypto litigation. Such cases could shape regulatory frameworks, influencing future crypto asset recovery processes.