CZ Requests Dismissal of FTX Trust's Fund Recovery Claim at Delaware Bankruptcy Court

Changpeng Zhao, founder of Binance, requested the Delaware Bankruptcy Court to dismiss the FTX Trust's claim for fund recovery.

According to Bloomberg's report on the 5th (local time), Changpeng Zhao stated, "I currently reside in the United Arab Emirates, and the laws in question, which FTX Trust and FTX Digital Markets are invoking, are unenforceable extraterritorially. They cannot claim Delaware jurisdiction."

Previously, FTX Trust had requested the recovery of $1.76 billion it argued was unjust enrichment received by Binance and several executives from the sale of about 20% of FTX overseas business unit shares and 18.4% of its U.S.-based unit shares.

Court records show that Alameda Research, a British Virgin Islands-based firm, transferred funds to Binance affiliates established in Ireland, the Cayman Islands, and the British Virgin Islands. Changpeng Zhao argued this was a clear offshore transaction.

CZ stated, "At the time, the two companies were business partners, and we held a 20% stake in FTX until the partnership was dissolved."