CZ Fights Back: Binance Co-Founder Moves to Dismiss Massive $1.76B FTX Claim

Binance's co-founder Changpeng 'CZ' Zhao isn't going down without a fight. Fresh legal filings reveal he's pushing to dismiss a staggering $1.76 billion claim from FTX's collapse—because in crypto, even bankruptcies come with extra zeros.

The move signals CZ's refusal to let Binance get tangled in FTX's spectacular implosion. While regulators scramble to assign blame, industry watchers note the irony: two exchange titans, one crumbling empire, and enough drama to fuel a Netflix series.

Will the courts buy his argument? Either way, the crypto world wins—more fireworks mean more volatility, and traders love that like a bull loves green candles.

Zhao Says Claims Fall Outside US Jurisdiction

In an August 4, 2025, motion filed in the U.S. Bankruptcy Court for the District of Delaware, Zhao said he is a resident of the United Arab Emirates (UAE) and “not at home” under Delaware’s jurisdiction. He called the claims “so far removed” from the U.S. that bankruptcy laws, which lack extraterritorial reach, do not apply.

Binance, the world’s largest crypto exchange, was briefly a business partner of FTX before personal and strategic differences led to a split. Zhao described himself as a “nominal counterparty” in the transaction. Two former Binance executives, Samuel Wenjun Lim and Dinghua Xiao, also sought dismissal in July.

Background of the Lawsuit

The lawsuit was filed in November 2024, nearly two years after FTX collapsed in November 2022 amid widespread fraud allegations. Bankman-Fried is currently serving a 25-year prison sentence, while Zhao completed a four-month sentence for U.S. anti-money laundering violations.

Zhao’s legal team at Baker & Hostetler LLP argued that serving U.S. counsel on a foreign defendant is improper. They also asserted that SAFE harbor provisions under federal law protect qualifying securities-related transactions from such claims.

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