Dismiss – Earlybirds Invest https://earlybirdsinvest.com Latest Crypto News Thu, 07 Aug 2025 19:23:55 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.9 https://i0.wp.com/earlybirdsinvest.com/wp-content/uploads/2024/12/cropped-New-Project-2024-12-17T235703.455.png?fit=32%2C32&ssl=1 Dismiss – Earlybirds Invest https://earlybirdsinvest.com 32 32 240146708 Binance Founder Changpeng Zhao Asks Court To Dismiss $1,760,000,000 FTX Bankruptcy Clawback Suit: Report https://earlybirdsinvest.com/binance-founder-changpeng-zhao-asks-court-to-dismiss-1760000000-ftx-bankruptcy-clawback-suit-report/ https://earlybirdsinvest.com/binance-founder-changpeng-zhao-asks-court-to-dismiss-1760000000-ftx-bankruptcy-clawback-suit-report/#respond Thu, 07 Aug 2025 19:23:54 +0000 https://earlybirdsinvest.com/binance-founder-changpeng-zhao-asks-court-to-dismiss-1760000000-ftx-bankruptcy-clawback-suit-report/

The former CEO of the crypto titan Binance is reportedly taking action to terminate the lawsuit filed by the bankruptcy estate of the collapsed digital asset exchange FTX.

In November, the FTX trust and FTX Digital Markets filed a suit against Binance, the exchange’s co-founder Changpeng Zhao and several other executives over a July 2021 share repurchase deal with FTX founder Sam Bankman-Fried.

Bloomberg reports that Zhao is now asking the US Bankruptcy Court for the District of Delaware to dismiss the claims seeking to claw back $1.76 billion that the trust and FTX Digital Markets say were improperly transferred by Bankman-Fried.

In a motion to dismiss filed on Monday, Zhao says the court does not have personal jurisdiction over him because of improper and ineffective service.

The motion argues that Zhao is a resident of the United Arab Emirates and, under the bankruptcy law, serving US counsel on a foreign defendant is improper and invalidates the complaint.

“The claims are so far removed from Delaware, and even the United States, that the statutes at issue, which lack extraterritorial application, do not even apply.”

The filing also says that the bankruptcy law does not definitively extend to foreign transfers, but the trust and FTX Digital Markets improperly attempt to extend their fraudulent transfer claims abroad.

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]]> https://earlybirdsinvest.com/binance-founder-changpeng-zhao-asks-court-to-dismiss-1760000000-ftx-bankruptcy-clawback-suit-report/feed/ 0 52018 Binance Co-Founder CZ Moves to Dismiss $1.8B FTX Lawsuit (Report) https://earlybirdsinvest.com/binance-co-founder-cz-moves-to-dismiss-1-8b-ftx-lawsuit-report/ https://earlybirdsinvest.com/binance-co-founder-cz-moves-to-dismiss-1-8b-ftx-lawsuit-report/#respond Thu, 07 Aug 2025 05:37:13 +0000 https://earlybirdsinvest.com/binance-co-founder-cz-moves-to-dismiss-1-8b-ftx-lawsuit-report/

Changpeng Zhao (CZ) has filed a motion to dismiss a $1.76 billion lawsuit brought against him by the FTX bankruptcy trust.

He says the court has no legal authority over him because he lives in the United Arab Emirates (UAE).

CZ’s Defence

According to a Bloomberg report, his legal team submitted the motion on Monday to the U.S. Bankruptcy Court for the District of Delaware, asserting that the accusations fall outside the court’s reach.

“The claims are so far removed from Delaware and even the United States that the statutes at issue, which lack extraterritorial application, do not even apply,” his lawyers wrote in the filing.

Lodged in November 2024, the lawsuit accuses Zhao, Binance, and several former executives of receiving billions of dollars in funds that were wrongfully moved by FTX founder Sam Bankman-Fried (SBF). It focuses on a July 2021 deal where the exchange sold back its equity in FTX’s international and US-based entities. According to the trust, Binance held a 20% stake in FTX’s international unit and 18.4% in the U.S. arm.

Court records show that Alameda Ltd, a company registered in the British Virgin Islands, transferred the funds for FTX. On the other hand, the Binance entities involved were registered in Ireland, the Cayman Islands, and the British Virgin Islands. CZ’s legal team argues this makes the transaction foreign and outside the reach of U.S. bankruptcy laws. They also claim he was a “nominal counterparty” in the deal, meaning he was not deeply involved in the process.

Zhao’s submission also described the relationship between FTX and Binance as only temporary. They ended their partnership due to personal disagreements, after which Binance’s equity in Bankman-Fried’s business was exchanged for cryptocurrency.

The crypto entrepreneur claims the lawsuit unfairly blames him and Binance for the collapse of FTX, which he described came about as a result of SBF’s misconduct. He also argued that serving legal papers through U.S.-based lawyers is not valid under bankruptcy law when the defendant lives abroad. His team says the trust is trying to stretch its claims beyond U.S. borders in ways that are not supported by the law. They say the fraud claims do not meet the standards required for protection under federal rules tied to securities contracts.

Former Binance Executives Also Seeking Dismissal

This development follows similar motions filed last month by former Binance executives Samuel Wenjun Lim and Dinghua Xiao, who are also named in the FTX suit and are seeking to be removed from the case.

CZ completed a four-month prison sentence in September last year after pleading guilty to U.S. anti-money-laundering violations. Meanwhile, Sam Bankman-Fried is serving 25 years for fraud and conspiracy.

Elsewhere, the defunct exchange announced it will start distributing the next batch of creditor claims on September 30. As of August 2025, it has returned approximately $6.2 billion to former customers across two major rounds.

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]]> https://earlybirdsinvest.com/binance-co-founder-cz-moves-to-dismiss-1-8b-ftx-lawsuit-report/feed/ 0 51911 Changpeng Zhao Pushes to Dismiss FTX’s $1.8 Billion Claim Over 2021 Crypto Deal https://earlybirdsinvest.com/changpeng-zhao-pushes-to-dismiss-ftxs-1-8-billion-claim-over-2021-crypto-deal/ https://earlybirdsinvest.com/changpeng-zhao-pushes-to-dismiss-ftxs-1-8-billion-claim-over-2021-crypto-deal/#respond Thu, 07 Aug 2025 01:03:43 +0000 https://earlybirdsinvest.com/changpeng-zhao-pushes-to-dismiss-ftxs-1-8-billion-claim-over-2021-crypto-deal/

Changpeng “CZ” Zhao, the former CEO of Binance



$7.16B

, has asked a US bankruptcy court to reject a $1.8 billion lawsuit brought by the crypto exchange FTX.

The case centers on a 2021 deal where FTX used crypto to buy back its shares from Binance.

Zhao stated in an August 4 court filing in Delaware that the case tries to hold him responsible for actions taken by FTX’s founder, Sam Bankman-Fried.

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He argued that none of the events tied to the share buyback took place in the United States. He pointed out that the Binance firms involved are based in Ireland, the Cayman Islands, and the British Virgin Islands.

Because the deal happened outside the US, Zhao’s lawyers said the legal rules being used in the case do not apply. They also argued that Zhao did not control or receive the crypto involved. The agreement used two tokens, Binance USD (BUSD) and FTX Token (FTT).

According to Zhao’s legal team, he was not the one who received the funds and only acted as a “nominal counterparty” in the transaction.

FTX also claimed that Zhao’s posts on X added to its collapse. Just before FTX filed for bankruptcy, Zhao posted about Binance selling off its FTT holdings.

Zhao argued that FTX’s failure came from its own wrongdoing. His filing described the company as “a fraudulent enterprise” and argued that it would have collapsed regardless of what he said.

Recently, a US Appeals Court overturned Nathaniel Chastain’s conviction in the OpenSea NFT case. What did they say? Read the full story.

]]> https://earlybirdsinvest.com/changpeng-zhao-pushes-to-dismiss-ftxs-1-8-billion-claim-over-2021-crypto-deal/feed/ 0 51875 Binance seeks to dismiss $1.76B FTX lawsuit, blames SBF for collapse https://earlybirdsinvest.com/binance-seeks-to-dismiss-1-76b-ftx-lawsuit-blames-sbf-for-collapse/ https://earlybirdsinvest.com/binance-seeks-to-dismiss-1-76b-ftx-lawsuit-blames-sbf-for-collapse/#respond Tue, 20 May 2025 11:28:44 +0000 https://earlybirdsinvest.com/binance-seeks-to-dismiss-1-76b-ftx-lawsuit-blames-sbf-for-collapse/

Binance has filed a motion to dismiss a $1.76 billion lawsuit brought by the FTX estate, accusing the defunct crypto exchange of trying to deflect blame for its own failure.

Filed on May 16 in the Delaware Bankruptcy Court, Binance’s legal team called the suit “legally deficient,” stating that FTX’s collapse was not triggered by market manipulation or hostile action but by internal misconduct.

“Plaintiffs are pretending that FTX did not collapse as the result of one of the most massive corporate frauds in history,” the filing said, pointing to Sam “SBF” Bankman-Fried’s conviction on seven counts of fraud and conspiracy.

FTX’s estate alleges that Binance received billions in crypto during a 2021 buyback deal, funded improperly with customer assets.

Binance rejects this claim, stating that “FTX remained a going concern for 16 months” after the share repurchase and that there was “no plausible claim” the exchange was insolvent at the time.

Binance filing to dismiss FTX’s lawsuit against the exchange. Source: Law360news

Related: Binance wants arbitration for all members of securities class suit

Zhao’s tweet and FTT crash

The lawsuit also accuses former Binance CEO Changpeng Zhao of triggering a collapse through a tweet on Nov. 6, 2022 announcing the liquidation of FTT tokens.

In response, Binance argued that Zhao’s tweet was based on publicly known concerns. “Binance’s decision to liquidate its remaining FTT was, in fact, ‘due to recent revelations ’— in particular, the Nov. 2, 2022, CoinDesk article” that exposed Alameda Research’s balance sheet.

The company further defended Zhao’s comment that Binance would aim to minimize market impact. “The Complaint contains no such facts” to prove Binance had no intention of following through.

CZ announced plans to liquidate FTT holdings in 2022. Source: CZ

In challenging the court’s jurisdiction, Binance said none of the foreign entities named “are incorporated in or maintain their principal place of business in the United States,” and thus fall outside the court’s reach.

The filing also criticizes the plaintiff’s narrative as “a grab bag of state law claims” based on “pure conjecture — much of it sourced from a convicted fraudster’s hindsight speculation.”

Binance has asked the court to dismiss all claims with prejudice. The FTX estate has not yet filed its response.

Related: FTX EU creditors can now withdraw money from Backpack exchange

FTX to disburse $5 billion in second round of creditor repayments

FTX is set to begin its second round of repayments to creditors more than two years after filing for bankruptcy.

In a May 15 notice, the FTX Recovery Trust announced that over $5 billion will be distributed starting May 30 through BitGo and Kraken, targeting parties in the second eligible group under the exchange’s reorganization plan.

According to the plan, five creditor groups categorized as “convenience classes” are expected to receive between 54% and 120% of their claims. In total, FTX may repay up to $16 billion, depending on the final number of valid claims.

Magazine: Father-son team lists Africa’s XRP Healthcare on Canadian stock exchange

]]> https://earlybirdsinvest.com/binance-seeks-to-dismiss-1-76b-ftx-lawsuit-blames-sbf-for-collapse/feed/ 0 37273 Judge Rules Against Most of DCG’s Motion to Dismiss NYAG’s Civil Securities Fraud Suit https://earlybirdsinvest.com/judge-rules-against-most-of-dcgs-motion-to-dismiss-nyags-civil-securities-fraud-suit/ https://earlybirdsinvest.com/judge-rules-against-most-of-dcgs-motion-to-dismiss-nyags-civil-securities-fraud-suit/#respond Sat, 12 Apr 2025 08:24:16 +0000 https://earlybirdsinvest.com/judge-rules-against-most-of-dcgs-motion-to-dismiss-nyags-civil-securities-fraud-suit/

A New York judge ruled Friday that the majority of New York Attorney General Letitia James’ civil securities fraud suit against crypto venture firm Digital Currency Group (DCG) and two of its executives can proceed to trial.

In 2023, James sued James sued DCG and its CEO Barry Silbert, DCG’s now-bankrupt lending arm Genesis Global Capital and its former CEO Michael Moro and crypto exchange Gemini, alleging that they worked together to cover up a gaping $1 billion hole in Genesis’ balance sheet caused by the wipe-out of Singapore-based crypto hedge fund Three Arrows Capital (3AC) in 2022.

James said DCG and Genesis made “false assurances” on social media that DCG had absorbed Genesis’ losses from 3AC’s implosion when, in fact, they had just papered over the hole with a promissory note, pleading to pay Genesis $1.1 billion over 10 years at a 1% interest rate. While DCG has adamantly maintained that the promissory note was legitimate, James’ suit claimed that DCG has “never made a single payment under the Note.”

While Gemini and Genesis both settled with the OAG, DCG, Silbert and Moro have fought them tooth and nail. Last spring, DCG and both executives filed motions to dismiss the suit, alleging that the Office of the Attorney General (OAG) had failed to state a claim — essentially arguing that they were not selling securities and thus should not be sued under New York State securities laws.

But the judge presiding over the case disagreed in her Friday ruling, writing that the OAG had, at least at the current stage of the case, adequately alleged that the Gemini Earn program — the now-defunct Gemini lending product that went belly-up in November 2022 and which sits at the center of James’ case — was a security.

Crane did, however, agree to toss out two of James’ claims against DCG, Moro and Silbert — one claim under New York’s Executive Law that they engaged in a scheme to defraud in the first degree, and another that they engaged in a conspiracy in the fifth degree — ruling that those claims were duplicative.

Though Crane ruled the case can proceed, DCG said it isn’t done fighting.

“As we have stated from the beginning, the allegations against DCG are a thin web of innuendo, mischaracterizations, and unsupported conclusions,” a spokesperson for DCG told CoinDesk. “We’re encouraged by the judge’s dismissal of the New York Attorney General’s most outrageous claims based on alleged violations of criminal fraud and conspiracy statutes. We will continue to fight this baseless lawsuit as we remain focused on our mission in support of the digital assets industry.”

]]> https://earlybirdsinvest.com/judge-rules-against-most-of-dcgs-motion-to-dismiss-nyags-civil-securities-fraud-suit/feed/ 0 30385 SEC agrees to dismiss enforcement case against Consensys https://earlybirdsinvest.com/sec-agrees-to-dismiss-enforcement-case-against-consensys/ https://earlybirdsinvest.com/sec-agrees-to-dismiss-enforcement-case-against-consensys/#respond Thu, 27 Feb 2025 18:49:25 +0000 https://earlybirdsinvest.com/sec-agrees-to-dismiss-enforcement-case-against-consensys/

The US Securities and Exchange Commission (SEC) has agreed in principle to dismiss its securities enforcement case against Consensys, according to a Feb. 27 statement.

Once final approvals are secured, the SEC will file a stipulation with the court to formally close the case. The resolution follows Consensys’ commitment to contest the allegations.

Consensys CEO Joseph Lubin said the dismissal, which is still pending final approvals, concludes the dispute. He added that the decision to challenge the agency was a broader effort to support blockchain software developers and protect innovation within the crypto industry.

Lubin said:

“No company wants to be the target of agency enforcement, but at the same time, it was our duty and honor to stand up for blockchain software developers in the hour it was most needed, as I’m sure our industry peers who also stood up against regulatory overreach would tell you.”

Development efforts

The Consensys CEO expressed appreciation for the SEC’s shift in approach under its current leadership, which he described as more pro-innovation and pro-investor.

He also reaffirmed the firm’s commitment to constructive dialogue with public and private policymakers to ensure balanced regulation supporting consumer protection and industry growth.

With the regulatory matter concluded, Consensys plans to focus entirely on development efforts. Lubin indicated that the firm is optimistic about the future of Ethereum and decentralized technologies, emphasizing the acceleration of the shift toward a more decentralized financial system.

The SEC filed charges against Consensys on June 28, 2024, alleging that the company engaged in the unregistered offer and sale of securities through its MetaMask Staking service and operated as an unregistered broker via both MetaMask Staking and MetaMask Swaps.

According to the complaint, Consensys has facilitated the sale of unregistered securities on behalf of liquid staking providers Lido and Rocket Pool since at least January 2023.

Stance shift

Since Mark Uyeda was nominated as the acting chairman of the SEC and the regulator’s Crypto Task Force was created, high-profile enforcement actions have escalated.

On Feb. 21, the SEC reached an agreement with Coinbase to drop its enforcement case, which is also pending final approval from the regulator. The dismissal was followed by a similar decision regarding Robinhood’s crypto unit.

In the past week, the SEC also closed its enforcement actions against Uniswap Labs and Gemini, while Tron founder Justin Sun seeks to end the protocol’s litigation with the regulator.

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]]> https://earlybirdsinvest.com/sec-agrees-to-dismiss-enforcement-case-against-consensys/feed/ 0 22256 SEC to Dismiss Lawsuit Against Coinbase, Pending Final Approval https://earlybirdsinvest.com/sec-to-dismiss-lawsuit-against-coinbase-pending-final-approval/ https://earlybirdsinvest.com/sec-to-dismiss-lawsuit-against-coinbase-pending-final-approval/#respond Mon, 24 Feb 2025 15:09:34 +0000 https://earlybirdsinvest.com/sec-to-dismiss-lawsuit-against-coinbase-pending-final-approval/

The U.S. Securities and Exchange Commission (SEC) has agreed to dismiss its lawsuit against Coinbase Global Inc., marking a significant progress in the ongoing debate over cryptocurrency regulation.

The lawsuit, originally filed in 2023, accused Coinbase of operating as an unregistered securities exchange. Coinbase has consistently denied these allegations, asserting that its business practices adhere to existing legal standards.

The case has been dismissed pending final approval, expected next week.

SEC to Dismiss Lawsuit Against Coinbase, Pending Final Approval
Source: Coinbase

What was the lawsuit all about?

The SEC filed its lawsuit against Coinbase in 2023, alleging that the exchange facilitated the trading of unregistered securities.

The agency argued that Coinbase should have registered as a securities exchange, broker, and clearing agency under U.S. law. Coinbase rejected these claims, maintaining that the digital assets on its platform did not meet the legal definition of securities.

A key issue in the dispute was the SEC’s approval of Coinbase’s public listing in 2021 where Coinbase’s leadership pointed out that the SEC had reviewed its business model before allowing it to go public, yet later took enforcement action despite no significant changes in operations. This led to concerns that regulatory oversight was inconsistent and lacked clear guidelines.

SEC to Dismiss Lawsuit Against Coinbase, Pending Final Approval
Source: Brian Armstrong

Why is this significant for the broader industry?

Many industry players sees the case as a potential precedent for future regulatory actions against digital asset exchanges. The dismissal may suggest that the SEC is reconsidering its approach to enforcement in the crypto sector, particularly under new leadership.

Advocates for cryptocurrency regulation have long called for a legislative framework rather than enforcement-based oversight and this decision could prompt renewed efforts to establish clearer rules for digital assets, reducing uncertainty for businesses and investors. However, broader regulatory questions remain unresolved, and future cases could still shape the landscape of blockchain regulation.

With the final approval of the dismissal expected next week, industry observers are watching closely to see how this decision might affect ongoing and future regulatory actions. Whilst this ruling removes an immediate legal threat to Coinbase, the debate over cryptocurrency regulation continues.

]]> https://earlybirdsinvest.com/sec-to-dismiss-lawsuit-against-coinbase-pending-final-approval/feed/ 0 21574