Changpong “CZ” has called on a court in the United States to reject the FTX’s $ 1.2 billion ClawBack complai, arguing that the court is not eligible for a foreign case involved in overseas transactions.
According to the Bloomberg report, the request was filed on August 5 in the Blade Bankruptcy court. The subject of the complai is about the stock redemption agreeme in July between the FTX and Binens, in which FTX apparely paid $ 1.5 billion through Alamda Reissech to redeem its stock.
The FTX claims that the transaction is inappropriate and iends to recover under the US bankruptcy laws. Zhao argues that the transaction was completely through foreign institutions, including companies in the British Virgin Islands, Ireland and the Cayman Islands, and is therefore outside the jurisdiction of US law.
Jurisprudence and defense
The Zhao’s legal team has announced that he lives in the United Arab Emirates and has no significa relationship with the Delaware or the United States. The request states that US bankruptcy laws are not applicable to the claimed transfers that were not iernal, and that the lawsuit is not sufficie to the US legal adviser for the foreign party.
Zhao has described himself as a “appare side” in the deal, saying that the complai is trying to make him responsible for FTX’s iernal failures. Two former Binsens executives, Samuel Vanjun Lim and Dinghoa Shao, named in the same case, also filed a request from the lawsuit last moh.
Law battles after the collapse of ftx
This is one of the several legal confroations formed after the FTX collapse in year 2. The CZ itself has also faced legal problems, including confessing to violations of US ai-money laundering laws and serving a four-moh prison seence, while Sam Bankman-Freed is serving a six-year seence for fraud.
