FTX Estate Cleared to Pursue $1.76 Billion From Binance

A U.S. bankruptcy judge has given the green light for the FTX recovery trust to continue its pursuit of $1.76 billion from Binance and its former CEO, Changpeng Zhao. The legal battle centers on a 2021 share repurchase agreement where FTX bought back stakes in its platform held by Binance entities. The trust argues these funds were transferred fraudulently and should be returned to repay creditors.

Judge Karen B. Owens dismissed specific claims related to the eventual collapse of the exchange, but she allowed core arguments regarding fraudulent transfers to proceed. This means the trust can now move forward with efforts to reclaim the billions in BUSD, BNB, and FTT tokens that were allegedly used to fund the deal. The ruling does not decide who is ultimately liable, nor does it guarantee that any money will be recovered.

While this represents a significant step for those hoping to recoup losses from the FTX bankruptcy, a long road remains. The trust must still prove its claims in court, overcome potential defenses from the Binance team, and secure a final judgment. For now, the case remains an important legal hurdle that will be watched closely by observers of the bankruptcy process.