FTX Trust Sues Binance for $1.76B Over 2021 Share Buyback

US Bankruptcy Judge Karen B. Owens has allowed the FTX Recovery Trust to pursue $1.76 billion in assets allegedly transferred to Binance entities in a 2021 share buyback. The recovery trust claims that seven agreements executed on July 15, 2021, repurchased Binance's 20% stake in FTX Trading and an 18.4% stake in West Realm Shires held by Changpeng Zhao.

The consideration for the transferred assets allegedly consisted of BUSD, BNB, and FTT tokens. The trust alleges that these assets were worth at least $1.76 billion, which is the amount being sought. However, this valuation has not been court-set or awarded.

Owens' ruling allows Counts I through V to proceed against four Binance entities and Changpeng Zhao, asserting constructive and actual fraudulent transfers. The dismissed counts against Xiao and Lim were for injurious falsehood, fraud, intentional misrepresentation, and unjust enrichment over statements linked to FTX's collapse.