Overview

• On August 4, Zhao filed a motion in Delaware Bankruptcy Court to dismiss FTX’s suit seeking to recover about $1.76 billion tied to a 2021 share buyback with Binance.
• His filing argues the court lacks personal jurisdiction over him as a resident of the United Arab Emirates and no substantive connection to the disputed transactions.
• The motion contends service on Zhao via U.S. counsel violated procedural rules for foreign defendants.
• Zhao describes himself as a “nominal counterparty” and denies ever controlling or receiving the customer assets that financed the repurchase.
• The court’s forthcoming ruling will shape the extraterritorial scope of U.S. bankruptcy courts over cross-border cryptocurrency transfers.