Zhao contends that the offshore nature of the 2021 share repurchase and his limited role, including social media posts, remove U.S. jurisdiction over the nearly $1.8B FTX clawback suit.
Former Binance CEO Changpeng Zhao moved to dismiss FTX's nearly $1.8 billion clawback suit in Delaware bankruptcy court. He argued that due to the transaction’s offshore execution and his nominal role, as well as his social media posts, the U.S. statutes do not apply. Zhao emphasized that he should not be held liable for FTX's collapse, comparing such liability to holding a whistleblower responsible for exposing fraud. Binance has also sought dismissal, and the suit includes additional defendants, including former executives. Zhao, previously jailed for money laundering, and Sam Bankman-Fried, sentenced to 25 years for fraud, remain embroiled in legal battles.