U.S. Bankruptcy Judge Karen B. Owens ruled on July 24 that the FTX Recovery Trust can proceed with claims against four Binance entities and Changpeng Zhao to recover at least $1.76 billion. This amount stems from a share repurchase executed on July 15, 2021, involving BUSD, BNB and FTT tokens to buy back Binance’s stake in FTX. The court maintained constructive and actual fraudulent transfer claims while dismissing collapse-related allegations and claims against Xiao and Lim. The trust must still prove liability, overcome defenses, obtain a judgment or settlement, and successfully collect. The ruling preserves a potentially large recovery path but creates no guaranteed recovery for creditors.
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