Changpong called for a $ 1.5 billion complaint of FTX asset recovery!

Changpong “CZ” has called on a court in the United States to reject the FTX’s $ 1.2 billion ClawBack complaint, 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 complaint is about the stock redemption agreement in July between the FTX and Binens, in which FTX apparently paid $ 1.5 billion through Alamda Reissech to redeem its stock.

The FTX claims that the transaction is inappropriate and intends 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 significant 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 internal, and that the lawsuit is not sufficient to the US legal adviser for the foreign party.

Zhao has described himself as a “apparent side” in the deal, saying that the complaint is trying to make him responsible for FTX’s internal failures. Two former Binsens executives, Samuel Vanjun Lim and Dinghoa Shao, named in the same case, also filed a request from the lawsuit last month.

Law battles after the collapse of ftx

This is one of the several legal confrontations formed after the FTX collapse in year 2. The CZ itself has also faced legal problems, including confessing to violations of US anti-money laundering laws and serving a four-month prison sentence, while Sam Bankman-Freed is serving a six-year sentence for fraud.