By Binance and its founder Changpeng Zhao have subpoenaed television investor Kevin O’Leary and several other prominent figures as part of their defense against a $1.76 billion lawsuit brought by the FTX Recovery Trust.
According to Bloomberg Law, the subpoenas were disclosed in a November 4, 2026, filing with the US Bankruptcy Court for the District of Delaware. The requests target O’Leary, author Michael Lewis, former Forbes digital assets research director Steven Ehrlich and accounting firm BDO USA.
Binance and Zhao are seeking documents and information potentially relevant to the legal dispute, which centers on FTX’s repurchase of Binance’s ownership stake in July 2021. The bankruptcy estate alleges that the transaction involved funds improperly transferred from FTX while the exchange was already insolvent.
Binance and Zhao have denied wrongdoing and challenged the legal basis of the recovery claims. The subpoenas represent a development in the discovery process rather than a determination of liability.
FTX Estate Seeks Recovery of $1.76 Billion Paid to Binance
The lawsuit was filed in November 2024 by entities representing the bankrupt FTX estate. It seeks to recover at least $1.76 billion transferred to Binance and related parties when Sam Bankman-Fried arranged to repurchase Binance’s stake in FTX.
Binance had been an early investor in the cryptocurrency exchange before the companies separated in 2021. The repurchase involved cryptocurrency payments, including FTX’s native FTT token and other digital assets.
FTX’s recovery trust argues that the exchange was already financially insolvent when the transaction occurred. According to the complaint, the payments constituted fraudulent transfers because they involved assets that should have remained available to satisfy creditor claims.
Binance has rejected those allegations, maintaining that the transaction was legitimate and that responsibility for FTX’s subsequent collapse rests with Bankman-Fried and other FTX insiders. The defendants previously sought dismissal of the lawsuit on jurisdictional and substantive grounds.
In July 2026, US Bankruptcy Judge Karen B. Owens allowed the central fraudulent-transfer claims to proceed. However, the court dismissed separate claims seeking damages connected to Binance’s alleged role in FTX’s November 2022 collapse.
The ruling permitted the recovery dispute to advance toward evidence gathering and potential trial proceedings.
O’Leary’s Previous FTX Testimony Draws Renewed Attention
O’Leary became associated with FTX through promotional arrangements and his investment in the exchange before its collapse. During congressional testimony in December 2022, he discussed his relationship with FTX and suggested that competition involving Binance contributed to the company’s difficulties.
Those statements may explain why Binance’s legal team considers his records and communications relevant to its defense. Michael Lewis, who wrote extensively about Bankman-Fried and FTX, is also among the individuals targeted for information. The inclusion of journalists, commentators and professional service providers indicates that the defendants are seeking evidence beyond records held by the parties directly involved in the transaction.
However, the precise scope of each subpoena and whether recipients will challenge the requests remain unresolved. A subpoena does not establish wrongdoing or require that every requested document ultimately be produced. The dispute is significant for FTX creditors because successful recovery of the contested funds could increase assets available for distribution.
Conversely, a ruling favoring Binance would limit the estate’s ability to reclaim the 2021 payment. The proceedings also illustrate the continuing legal consequences of FTX’s collapse, nearly four years after the exchange entered bankruptcy.
The central question remains whether the July 2021 transaction qualifies as a recoverable fraudulent transfer under applicable bankruptcy law. No final judgment has been issued on that claim.