• TEXT= DATE: 13.12.2025 Solana Breakpoint | 11-13 Dec 2025 | Abu Dhabi
  • TIMER= 13.12.2025
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  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
  • ethereumEthereum (ETH) $ 2,365.53 1.12%
  • tetherTether (USDT) $ 1.00 0.2%
  • bnbBNB (BNB) $ 302.66 0.19%
  • solanaSolana (SOL) $ 95.44 1.28%
  • xrpXRP (XRP) $ 0.501444 0.1%
  • usd-coinUSDC (USDC) $ 0.996294 0.34%
  • staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
  • cardanoCardano (ADA) $ 0.481226 2.68%
  • avalanche-2Avalanche (AVAX) $ 34.37 1.19%
  • bitcoinBitcoin (BTC) $ 42,977.00 0.18%
    ethereumEthereum (ETH) $ 2,365.53 1.12%
    tetherTether (USDT) $ 1.00 0.2%
    bnbBNB (BNB) $ 302.66 0.19%
    solanaSolana (SOL) $ 95.44 1.28%
    xrpXRP (XRP) $ 0.501444 0.1%
    usd-coinUSDC (USDC) $ 0.996294 0.34%
    staked-etherLido Staked Ether (STETH) $ 2,367.26 1.4%
    cardanoCardano (ADA) $ 0.481226 2.68%
    avalanche-2Avalanche (AVAX) $ 34.37 1.19%
image-alt-1BTC Dominance: 58.93%
image-alt-2 ETH Dominance: 12.89%
image-alt-3 BTC/ETH Ratio: 26.62%
image-alt-4 Total Market Cap 24h: $2.51T
image-alt-5Volume 24h: $144.96B
image-alt-6 ETH Gas Price: 5.1 Gwei
 

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$1.7 billion FTX suit

$1.7 billion FTX suit puts Changpeng Zhao and Binance under legal spotlight

https://icn.live/wp-content/uploads/2025/08/1.7-billion-FTX-suit.mp3
  • by ICN.live
Leila Al-Khatib

$1.7 billion FTX suit has reignited tensions between Binance co-founder Changpeng Zhao and the now-defunct FTX exchange.

The lawsuit, filed by FTX’s bankruptcy estate, aims to recover $1.7 billion linked to a 2021 share repurchase deal. Zhao, commonly known as CZ, has filed a motion to dismiss, contesting the court’s jurisdiction and challenging the legitimacy of the service process.

FTX claims that the buyback deal was fraudulently funded by Alameda Research, an affiliate that played a central role in FTX’s collapse. CZ argues that the case should be thrown out on both procedural and substantive grounds. His legal team says the suit improperly targets a foreign national and that Delaware is an inappropriate venue.

They emphasize that Binance entities are based in Ireland and the Cayman Islands, while Alameda is incorporated in the British Virgin Islands. The claim, according to CZ, is too disconnected from U.S. soil to fall under American legal authority.

CZ Fights Back Against $1.7 Billion FTX Suit

The $1.7 billion FTX suit also accuses Zhao of destabilizing FTX through tweets that contributed to public distrust. These communications, according to FTX, helped accelerate the platform’s financial unraveling. CZ counters that FTX’s failure was caused by its own mismanagement under Sam Bankman-Fried, now serving time in prison.

Zhao points out that Binance and FTX ended their partnership well before the collapse. The decision to sell Binance’s FTT holdings, he says, was public and made more than a year after the separation. CZ’s defense casts FTX’s legal strategy as an attempt to shift blame instead of accepting responsibility.

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FTX Legal Offensive Targets Industry Giants

The $1.7 billion FTX suit is one part of a broader legal campaign. FTX’s bankruptcy estate has also gone after Crypto.com, Bybit, KuCoin, Anthony Scaramucci, and even the Zuckerberg-backed political group FWD.US. All these moves aim to recover funds and repay creditors.

FTX’s third wave of creditor repayments is expected to start on September 30. The legal onslaught raises new questions about crypto governance, offshore accountability, and the future of centralized platforms.

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What is the $1.7 billion FTX suit about?

The $1.7 billion FTX suit targets Binance and its co-founder Changpeng Zhao. FTX’s bankruptcy estate alleges that a 2021 share repurchase deal between FTX and Binance was improperly funded using assets from Alameda Research. This, according to the lawsuit, constitutes a fraudulent transfer that must be clawed back. FTX also argues that Zhao made public statements that destabilized FTX, contributing to its collapse. The case has been filed in Delaware bankruptcy court and is part of a wider campaign by FTX to recover lost capital from former partners and associates.

What is CZ’s response to the FTX lawsuit?

Changpeng Zhao, also known as CZ, filed a motion to dismiss the $1.7 billion FTX suit. He argues that the case should be thrown out on procedural grounds, stating the U.S. court has no jurisdiction over him as he resides in the UAE. His legal team also says FTX improperly served the lawsuit via U.S.-based counsel, which does not meet legal standards for international defendants. On the merits, CZ maintains that Binance’s actions were legal and transparent, and that FTX’s downfall was entirely self-inflicted.

Why does jurisdiction matter in this lawsuit?

Jurisdiction is a major issue in the $1.7 billion FTX suit because many parties involved are based outside the U.S. CZ lives in the UAE, Binance is incorporated in Ireland and the Cayman Islands, and Alameda Research was based in the British Virgin Islands. Zhao’s legal team claims that Delaware is not a suitable venue because the key transactions and individuals are not tied to U.S. law. If the court agrees, it could dismiss the case without addressing the actual allegations, delaying or derailing FTX’s recovery efforts.

How does this lawsuit affect crypto’s future?

The $1.7 billion FTX suit could shape future standards for accountability in the crypto industry. It highlights the challenges of cross-border regulation, especially when platforms and leaders operate across jurisdictions. The case also reflects how failed exchanges are trying to reclaim lost assets by holding former partners liable. If courts begin siding with bankruptcy estates, other industry players may face similar lawsuits. For crypto investors and projects, it’s a reminder that governance and legal exposure can outlast market hype.

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