Market News

Court Ruling Looms: Binance and FTX Face Major Legal Challenges

Changpeng Zhao, founder of Binance, is seeking the dismissal of a $1.76 billion lawsuit initiated by the FTX bankruptcy estate.

This lawsuit stems from a share repurchase agreement executed in July 2021 involving FTX’s founder Sam Bankman-Fried.

The FTX trust and FTX Digital Markets allege that Bankman-Fried improperly transferred significant funds, prompting the clawback suit against Zhao and other Binance executives.

In a motion filed with the US Bankruptcy Court, Zhao contends that the court lacks personal jurisdiction over him due to improper service of documents.

He asserts that his residency in the United Arab Emirates invalidates the complaint under bankruptcy law.

Zhao's filing argues that the claims are distant from Delaware and US jurisdiction, implying that the pertinent statutes do not apply extraterritorially.

In another legal development, a £9 billion ($12 billion) claim against Binance has reached the UK Supreme Court regarding the alleged delisting of Bitcoin Satoshi Vision (BSV).

BSV holders accuse Binance and other exchanges of colluding to delist BSV in 2019 without just compensation.

This controversial case has traversed through various legal venues, including the Competition Appeal Tribunal and the Court of Appeal, where the initial claims were dismissed.

These unfolding legal battles reflect the turbulent landscape facing major cryptocurrency exchanges as they navigate complex regulatory challenges.