Overview

• On August 4, Zhao filed motions in Delaware bankruptcy court to dismiss FTX’s $1.76–1.8 billion clawback lawsuit on jurisdictional and procedural grounds.
• FTX’s bankruptcy estate alleges the 2021 share repurchase was funded by misappropriated customer assets via Alameda Research and seeks recovery under fraudulent transfer claims.
• Zhao’s legal team argues that as a United Arab Emirates resident with no substantial U.S. ties, he is beyond the personal jurisdiction of American courts.
• The defense contends that serving him through U.S.-based counsel failed to satisfy legal requirements for notifying a foreign national in bankruptcy proceedings.
• A decision on these motions will shape FTX’s creditor recovery plan and comes ahead of a planned $1.9 billion distribution to claimants in September.