Former Binance CEO Zhao Changpeng has filed a motion to dismiss a $1.76 billion lawsuit initiated by FTX’s bankruptcy trust, arguing the U.S. court lacks jurisdiction over him due to his residency in the United Arab Emirates.
International Jurisdiction Questioned in FTX’s Legal Move
The lawsuit centers around Zhao’s alleged involvement in a major fund transfer connected to Sam Bankman-Fried. Zhao argues that he was only a nominal party in a share buyback deal with FTX and challenges the legal jurisdiction of the United States over his actions.
This case follows a series of similar lawsuits targeting former Binance executives. Zhao’s legal team emphasizes that the claims are not tied to U.S. transactions and therefore lack a jurisdictional basis.
Potential Ripple Effects for Binance and Broader Crypto Industry
The case, if not dismissed, could trigger increased regulatory scrutiny of Binance’s global operations. Experts suggest this could influence how cross-border crypto transactions are viewed by regulators around the world.
Zhao Changpeng — “The claims lack jurisdictional basis and do not pertain to U.S. transactions.”
BNB Price Performance Amid Legal Developments
According to CoinMarketCap, Binance Coin (BNB) is trading at $754.43 with a market cap of approximately $105.08 billion. It holds a market dominance of 2.83%. In the past 24 hours, BNB saw a trading volume of $1.94 billion, down by 0.85%. While the token has declined 1.75% in the last 24 hours and continued its downtrend over the past 7 and 30 days, BNB has shown signs of recovery in the last 60 to 90 days.
This ongoing legal challenge marks another pivotal moment in the post-FTX crypto landscape, further highlighting the need for clear international regulatory frameworks.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
