The former CEO of the crypto titan Binance is reportedly taking action to terminate the lawsuit filed by the bankruptcy estate of the collapsed digital asset exchange FTX.
In November, the FTX trust and FTX Digital Markets filed a suit against Binance, the exchange’s co-founder Changpeng Zhao and several other executives over a July 2021 share repurchase deal with FTX founder Sam Bankman-Fried.
-->Bloomberg reports that Zhao is now asking the US Bankruptcy Court for the District of Delaware to dismiss the claims seeking to claw back $1.76 billion that the trust and FTX Digital Markets say were improperly transferred by Bankman-Fried.
In a motion to dismiss filed on Monday, Zhao says the court does not have personal jurisdiction over him because of improper and ineffective service.
The motion argues that Zhao is a resident of the United Arab Emirates and, under the bankruptcy law, serving US counsel on a foreign defendant is improper and invalidates the complaint.
“The claims are so far removed from Delaware, and even the United States, that the statutes at issue, which lack extraterritorial application, do not even apply.”
The filing also says that the bankruptcy law does not definitively extend to foreign transfers, but the trust and FTX Digital Markets improperly attempt to extend their fraudulent transfer claims abroad.
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