6-8-2025 – Binance co-founder Changpeng “CZ” Zhao has filed a motion in Delaware bankruptcy court seeking dismissal of a $1.76 billion clawback lawsuit brought by FTX’s bankruptcy estate, arguing the U.S. court lacks jurisdiction over the case.

The motion cites CZ’s UAE residency and claims he was only a “nominal counterparty” in the disputed transaction. Binance called the lawsuit “legally flawed” and an attempt to deflect responsibility from FTX’s internal mismanagement and fraud. The clawback suit seeks to recover funds that FTX’s bankruptcy team alleges were improperly transferred from the collapsed exchange to Binance in the months before FTX’s November 2022 bankruptcy.

In court filings, Binance argued that FTX’s insolvency stemmed from internal fraud rather than any actions by the rival exchange. The company maintains that the Delaware court has no authority over the matter given the international nature of the entities involved and the lack of sufficient U.S. connections.

The court will now review CZ’s dismissal arguments as FTX’s recovery team continues pursuing billions in assets to compensate creditors of the bankrupt exchange.