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Former Benance CEO Changpeng ‘CZ’ Jhao has filed a resolution to dismiss a lawsuit from FTX that aims to recover about $ 1.8 billion.
The FTX of Sam Bankman-Fride filed a case against its competitive Benance and CZ on 10 November 2024. trial Seeking losses, accused of playing an important role.
However, according to 4 August 2025 Enforce“The plaintiff blamed Mr. Jhao and others for the failures of Shri Bankman-Fride.”
The Zhao claim is called “legally baseless” and “lump sum incohant”. His legal team said that “while the plaintiff and bense were rivals, they were also Britifly business partners, when Benance Defendants had about 20% stake in FTX Trading. But Zhao and Bankman-Fride could not work together, and the parties separated.”
Breaking: Benefic’s co-founder CZ wants $ 1.8b FTX out of the trial.
He said that this is not a jurisdiction over him as he lives in the United Arab Emirates and the case is about offshore deals.
If it bears, the CZ may move untouched. pic.twitter.com/wbdqw7yyrdb
– Crypto Patel (@cryptopatel) August 6, 2025
Explore: FTX declares war on Benance and Zhao to trigger a liquidity crisis
FTX lacks jurisdiction over UAE Citizen CZ
The primary argument of the Jhao’s legal team is that the use of the American courtyard on Zhao, which is a citizen and resident of the United Arab Emirates (UAE). Silence says that the matter has been removed from the US, as the transactions and institutions involved in it were all remains.
The lawyers of Zhao also said that he was not the director of money in questions.
The legal team described CZ in transaction as a “nominal counters”. This essentially means that he does not have personal possession or control over the crypto that was exchanged. The deal included Binance (BUSD) and FTX tokens.
Meanwhile, FTX, which is now managed by a team working tea repayers, alleges that 2021 shares were established with the customer’s money, in which a fraud transfer was formed.
discover: The best meme coin to invest in 2025
FTX declares war on Benance and Zhao to trigger a liquidity crisis
FTX was one of the world’s largest cryptocurrency exchanges, but it has been filed for bankruptcy in November 2022. Financial mismanagement and fraud reviews remain the main reason behind its collapse.
Importantly, the collapse of the company caused a loss of billions of dollars to investors and introducing public conferences in digital assets.
The trial accused Benance and its former CEO Changpeng Jhao of being engaged in action, which increased the financial instability of FTX.
In particular, FTX claims that Benance’s decision to choose a large Porion of its holdings in early November 2022, Zhao publicly announced that Binens would reduce its entire status in FTT due to FTX’s “recent revelations” about FTX’s financial health.
Related: Former FTX execution Nishad Singh does not get prison time, ordered to leave $ 11 billion
key takeaways
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CZThe primary argument of the legal team is that the US courts have the jurisdiction of Jhao. He is a citizen and a resident of the United Arab Emirates.
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Jhao recently completed the four -month prison scene. He convicted for violation,
The Post CZ “nonsensical” looks for the dismissal of $ 1.76b Ftx clawsuit which appeared for the first time on 99bitcoins.
