FTX Recovery Trust Pursues Binance for $1.76 Billion in 2021 Share Buyback Deal

A US bankruptcy judge has allowed FTX's recovery trust to pursue Binance for $1.76 billion in a 2021 share buyback deal.

The court ruled that the core clawback claims against four Binance entities and Changpeng Zhao can proceed, but dismissed claims tied to FTX's collapse.

The trust alleges that seven agreements executed on 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 for a consideration of BUSD, BNB, and FTT tokens.

The transferred assets were allegedly worth at least $1.76 billion, and the trust is seeking to recover this amount.