Binance and CZ issue a subpoena to Kevin O'Leary in FTX clawback lawsuit
Binance and its founder Changpeng Zhao (CZ) have issued a subpoena to Shark Tank investor Kevin O'Leary in the FTX bankruptcy clawback lawsuit, seeking related information. The lawsuit, filed by the FTX Recovery Trust and FTX Digital Markets in November 2024 against Binance and CZ, alleges that the July 2021 transaction in which Binance sold back its FTX shares to FTX was a fraudulent transfer and seeks to recover at least $1.76 billion.
O'Leary testified in December 2022 that Binance deliberately caused FTX to fail. In July this year, the U.S. Bankruptcy Court for the District of Delaware denied Binance and CZ's motion to dismiss the core allegations, and the case has entered discovery.
Original source:
Title: Binance and CZ subpoena Kevin O'Leary in $1.76 billion FTX clawback fight Publisher: Crypto Briefing Publication date: 2026-11-05 URL: https://cryptobriefing.com/binance-cz-subpoena-kevin-oleary-ftx-lawsuit/ Source nature: crypto media report (citing court notice and public records) Verification status: Read the full Crypto Briefing article in this instance; the subpoena target, the lawsuit amount, and the timing of the court's denial of the motion to dismiss were cross-checked against Bloomberg Law reports and court filings Supporting content: supports Binance and CZ issuing a subpoena to O'Leary, the $1.76 billion clawback claim, and the case entering discovery
ABAB AI Insight
The subpoena was issued by Binance and CZ as defendants during discovery, and the targets include outside witnesses such as O'Leary. The core of the lawsuit is the July 2021 transaction in which FTX repurchased the shares Binance held; the plaintiffs argue that the transaction constituted a fraudulent transfer and seek to recover at least $1.76 billion.
Procedurally, the U.S. Bankruptcy Court for the District of Delaware denied Binance and CZ's motion to dismiss the core fraudulent-transfer allegations in July 2026, and the case then moved into discovery. O'Leary testified publicly in December 2022 that Binance deliberately caused FTX to fail, and that statement is now within the scope of the defendants' discovery.
A comparable case is one in which, in a bankruptcy proceeding, a plaintiff alleges a fraudulent transfer and a defendant may subpoena a third party holding relevant information. The similarity is that discovery can be taken from non-parties at the discovery stage; the difference is that the target of this subpoena had publicly accused the defendants of wrongdoing, and the amount at issue reaches $1.76 billion.
This event changes the confirmed status that a subpoena has been issued during discovery, rather than any finding of liability or any recovered amount having been executed. The indicators to watch are whether the subpoena is enforced, O'Leary's response, and the subsequent discovery and litigation schedule.
ABAB News · Laws of perception
A subpoena during discovery does not mean liability has been established or funds have been recovered.
After the court denied the motion to dismiss the core allegations in July 2026, the case entered the discovery process.
The clawback claim concerns the July 2021 share repurchase transaction and seeks at least $1.76 billion.