$1.76 Billion Crypto Transfer Lawsuit Against Binance Continues

A US bankruptcy judge has allowed the FTX Recovery Trust to continue pursuing at least $1.76 billion in alleged fraudulent crypto-asset transfers from Binance entities and Changpeng Zhao.

The July 24 ruling by U.S. Bankruptcy Judge Karen B. Owens preserved Counts I, V, which assert constructive and actual fraudulent transfers against four Binance entities and Zhao, while dismissing several tort claims.

The trust alleges that the transferred assets were worth at least $1.76 billion in a share repurchase deal between FTX Trading and Binance on July 15, 2021, involving BUSD, BNB, and FTT tokens.

Owens allowed Counts I through V to proceed against Binance Holdings Limited; Binance Capital Management Co. Ltd., now known as Digital Anchor Holdings Limited; Binance Holdings (IE) Limited; Binance (Services) Holdings Limited; and Zhao.