- Zhao fights FTX’s $1.8B lawsuit, saying it wrongly blames him for their fraud.
- Deal was outside US; Zhao claims he didn’t receive or control the funds.
- His X posts didn’t cause FTX’s fall, a scam bound to collapse, he argues.
Changpeng Zhao, the former Binance CEO, has asked a Delaware bankruptcy court to throw out a $1.8 billion lawsuit from FTX.
The bankrupt exchange claims Zhao and Binance received fraudulently transferred funds in a 2021 share buyback deal, paid for with misused customer money.
Zhao argues the lawsuit wrongly blames him for the actions of FTX’s founder, Sam Bankman-Fried, who’s serving 25 years for fraud.
Zhao says the deal happened outside the US, involving companies in Ireland, the Cayman Islands, and the British Virgin Islands, and used cryptocurrencies like Binance USD and FTX Token.
Zhao Denies Role in FTX’s Collapse
Zhao insists he didn’t personally receive or control the transferred crypto and was only a “nominal counterparty” in the deal.
He also denies that his X posts about selling FTX Tokens caused FTX’s downfall, calling it a fraudulent business that would’ve collapsed anyway.
His lawyers compare blaming him to holding a whistleblower responsible for exposing a scam. Binance and two former executives also asked to dismiss the lawsuit, calling it “legally deficient.”
Zhao, who served four months for money laundering, says FTX’s issues stem from its own fraud, not his actions. With Bankman-Fried appealing his conviction, the legal battle continues as FTX’s team tries to recover funds for creditors.
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