FTX Recovery Trust and FTX Digital Markets are seeking to recover about $1.76 billion in cryptocurrency transferred in a 2021 repurchase of Binance’s stake in FTX. On July 24, 2026, a Delaware bankruptcy judge dismissed some claims but let core fraudulent-transfer claims against Binance entities and Changpeng Zhao continue. That ruling lets the case proceed; it does not establish liability or order Binance to repay the money.
Why is FTX suing Binance?
The lawsuit centers on a July 15, 2021 agreement to buy back shares in FTX held by Binance, Zhao and Binance management. The court’s opinion describes about $1.76 billion in cryptocurrency—FTT, BNB and BUSD—as the agreed consideration. FTX’s plaintiffs allege that Alameda Research funded the payment and that loan arrangements meant to make the FTX buyers repay Alameda were neither paid nor intended to be paid. The opinion notes that the complaint is not clear about which Alameda entity made particular transfers. The court opinion
The plaintiffs allege the transaction took place while FTX was insolvent and Alameda lacked sufficient funds. As recounted in the opinion, Caroline Ellison allegedly told Sam Bankman-Fried that Alameda could not afford the repurchase; he allegedly directed Alameda to “borrow” about $1 billion from FTX.com customer deposits. These are allegations in the complaint, not findings that Binance or Zhao is liable.
Why the dollar figures differ
The approximately $1.76 billion headline figure is the value of cryptocurrency the agreement specified as consideration. The court opinion separately says the plaintiffs alleged those tokens were worth about $1.46 billion at the time of transfer and that the shares received were worthless. Those are distinct figures and valuations, not interchangeable measures of a court-ordered debt.
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The opinion also recounts that Paxos received approximately $721 million in U.S. dollars before minting the BUSD used in the transfer. It cites an Alameda internal balance sheet showing net assets of approximately negative $2.7 billion and liabilities of $9.4 billion; those figures appear in the context of plaintiffs’ allegations, not as a separate judgment about Binance. Court opinion and order
What did the judge decide?
On July 24, 2026, U.S. Bankruptcy Judge Karen B. Owens granted the dismissal motions in part and denied them in part. The order dismissed Counts I through V against Samuel Lim and Dinghua Xiao, and Counts VI through IX against the Binance defendants. It denied the remainder of the requested relief. Opinion and operative order
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The surviving fraudulent-transfer claims cleared the pleading stage: the opinion said the complaint adequately alleged a domestic transfer, a plausible theory that Zhao was a transferee, and facts supporting intent and insolvency. A decision on a motion to dismiss tests whether claims can proceed on the pleaded facts; it is not a final ruling that the allegations are true.
Claims that survived and claims dismissed
| Part of the case | Result on July 24, 2026 |
|---|---|
| Core claims seeking recovery of the 2021 transfer | Some fraudulent-transfer claims against Binance entities and Zhao survived dismissal. |
| Counts I–V against Samuel Lim and Dinghua Xiao | Dismissed. |
| Counts VI–IX against the Binance defendants | Dismissed. |
| Claims for damages tied to FTX’s November 2022 collapse | Dismissed against the Binance defendants, as summarized by Bloomberg Law. |
The order is the primary source for the ruling; Bloomberg Law’s July 27, 2026 report provides context on the practical distinction between the surviving recovery claims and the dismissed collapse-related damages claims.
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Will Binance have to pay FTX back?
That remains unresolved. The judge did not order Binance to return $1.76 billion, and the surviving claims have not been finally adjudicated. The ruling means the plaintiffs may continue pursuing those claims; it does not determine whether they will ultimately prove them or recover money.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is known about the next procedural step?
A court-filed amended hearing agenda dated August 5, 2026 listed defendants’ emergency motion to extend deadlines for an interlocutory appeal and an appeal as of right. It said the hearing was scheduled to proceed on August 7. The agenda establishes that the hearing was scheduled, but the available records do not establish its outcome or any later order. The official Delaware bankruptcy court opinions index lists the July 24 opinion in adversary proceeding 24-50222. District of Delaware opinions index
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What the case does—and does not—establish
- It concerns a 2021 share repurchase, not a ruling that Binance caused FTX’s November 2022 collapse.
- The court allowed some recovery claims to proceed but dismissed other claims and defendants.
- The allegations about customer deposits, insolvency and the value exchanged remain allegations unless established later in the case.
- No repayment amount or final liability has been ordered.
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