Judge lets FTX recovery trust chase Binance for $1.76 billion over a 2021 share buyback

Jul. 31, 2026 at 2:20 pm GMT • 2 min read 01 FTX’s $1.76 billion clawback claims against four Binance entities and Changpeng Zhao can proceed. 02 The court dismissed collapse-related claims and the clawback counts against Dinghua Xiao and Samuel Lim. 03 The recovery trust still must prove liability, overcome defenses, win or settle, and collect.The FTX Recovery Trust, which is pursuing assets for the bankrupt exchange's creditors, can keep trying to recover at least $1.76 billion that FTX alleges it transferred to Binance parties in a 2021 share repurchase.A July 24 ruling by U.S. Bankruptcy Judge Karen B. Owens preserved the core clawback claims against four Binance entities and Changpeng Zhao while dismissing separate claims tied to FTX's collapse. The decision lets the case continue but does not establish liability or award money to the estate.According to the complaint, seven agreements executed July 15, 2021, repurchased Binance's roughly 20% stake in FTX Trading and an 18.4% stake in West Realm Shires held by Zhao, Dinghua Xiao and Samuel Wenjun Lim. The consideration allegedly consisted of the BUSD, BNB and FTT tokens.The trust alleges that the transferred assets were worth ...