A federal judge has allowed the FTX Recovery Trust to move forward with its claim against Binance over a $1.76 billion share buyback dating to 2021, keeping one of the largest disputes tied to the FTX estate alive at the pleading stage.
Why the judge let the Binance claim survive
The decision came in a ruling on motions to dismiss in the FTX bankruptcy litigation, which permitted the recovery trust’s action against Binance to proceed, according to the court’s opinion and order. For related coverage, see Circle Receives Limited-Purpose Trust Charter From NYDFS.
This is a procedural step, not a final ruling on the merits. It means the trust has cleared the initial legal threshold to keep litigating, not that the court has found Binance liable for anything. For related coverage, see What Is a Stablecoin? Peg, Reserves, Redemption, and How They Work.
The case is docketed as FTX Recovery Trust v. Binance Holdings Limited et al., as reflected in the federal court record. The immediate significance is simply that the lawsuit survives. For related coverage, see AI Revolution Summit – India 2026.
What the 2021 share buyback dispute is about
At the center of the claim is a $1.76 billion transaction from 2021 in which shares were repurchased, a deal the FTX Recovery Trust is now seeking to challenge.
Recovery actions of this kind generally aim to claw back value for a bankrupt estate so that funds can be redistributed to creditors. The buyback itself is the core factual issue the trust must ultimately prove.
The FTX estate has pursued a series of recovery efforts since the exchange’s collapse, and this claim adds a major exchange counterparty to that list. It sits alongside other high-stakes crypto insolvency fights, including a separate courtroom battle over ownership of nearly 40,000 dormant Bitcoin.
What it could mean for Binance and FTX creditors
Because the claim remains active, the outcome could eventually feed back into creditor recoveries if the trust succeeds in reclaiming any portion of the disputed amount for the estate.
The dispute is a reminder that large crypto counterparties can face follow-on litigation over pre-collapse deals long after a transaction closes. Binance continues to operate globally, having recently regained website access in the Philippines through a regulatory sandbox, even as this legacy claim proceeds.
The next stages of the case will play out in the Delaware bankruptcy court, whose docket and opinions are tracked in the FTX case administration records. No decision on liability has been reached.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
