Binance FTX Lawsuit Update: CZ Subpoenas Shark Tank Star
Subpoenas Land on Kevin O'Leary in the Clawback Fight
Crypto news today brings a fresh turn in the Binance FTX lawsuit. The exchange and its founder, Changpeng Zhao (CZ), have issued subpoenas to investor Kevin O'Leary and others, including author Michael Lewis, in the $1.76 billion clawback case.
The subpoenas showed up on the docket between late October and early November 2026. They ask outside parties to hand over records, and nothing more. Being named in one doesn’t mean a person did anything wrong. You can browse the full list of filings on the court docket.
Source: @MartiniGuyYT Official X post
Why the Recovery Trust Wants the 2021 Buyback Reversed
The complaint was filed in November 2024 by the FTX Recovery Trust, which recovers money for creditors of the collapsed exchange. It targets a July 2021 share buyback, in which Alameda Research and related entities paid to repurchase an equity stake held by the defendants.
The Trust calls the buyback a fraudulent transfer. It alleges Alameda Research was already insolvent and used customer funds to pay for the deal. Those are allegations, not findings.
July 2026 Ruling Moved the Case Into Discovery
In July 2026, the judge in this crypto bankruptcy largely denied motions to dismiss the core fraudulent-transfer claims. They can proceed against several defendant entities and CZ personally.
With that ruling, the Binance FTX lawsuit entered discovery, where parties can seek documents, depositions, and third-party subpoenas.
Claims against two former executives were dismissed on jurisdiction grounds, and the court declined to compel arbitration. Official notices appear on the claims agent site.
Why Kevin O'Leary Matters in the Binance FTX Lawsuit
O'Leary was a paid FTX spokesman and an investor in the firm. In written testimony to the Senate Banking Committee in December 2022, he gave his view that the rival exchange intentionally put it out of business.
He also called it a war between the two exchanges and said it was his opinion, not based on records, according to the Senate hearing record. The defense appears to be exploring that background, along with public statements and the 2021 exit. A subpoena to a well-known name draws attention, but it does not signal wrongdoing.
What Happens Next as the Case Stays in Discovery
No liability has been decided. The defendants deny wrongdoing and argue that Sam Bankman-Fried and company insiders are responsible for the collapse. The $1.76 billion is the amount sought, not a judgment.
The case now turns on evidence rather than on whether it can start. The subpoenas suggest the defense is building proof on four points:
Insolvency in mid-2021
The value exchanged
Intent behind the transfer
Defenses such as jurisdiction
For now, the Binance FTX lawsuit stays in discovery, and any new update could affect creditor recoveries.
Disclaimer: This article is for educational and informational purposes only and should not be considered financial or investment advice. Always conduct your own research before making investment decisions.
