Binance, the world’s largest crypto exchange, and its founder, Changpeng Zhao, popularly known as CZ, have subpoenaed Kelvin O’Leary. The Canadian business and television personality is set to testify as part of Binance and CZ’s defense against a $1.76 billion lawsuit.
The case progresses as one of the most controversial events in crypto history. The FTX Recovery Trust and FTX Digital Markets filed the lawsuit on November 10, 2025 against Binance Holdings and CZ.
Binance and CZ Challenge FTX’s Claims
According to court records, Binance stated that it sold its stake in FTX back to the exchange in 2021. The deal closed in July 2021 and was valued at approximately $1.76 billion.
However, FTX’s bankruptcy estate argues that the payment was a fraudulent transfer because the exchange was allegedly insolvent when the transaction occurred.
For context, in bankruptcy proceedings, a fraudulent transfer claim allows an estate to recover assets or payments made under certain improper circumstances. If successful, the recovered funds could help increase the amount available to repay affected creditors.
O’Leary’s involvement is particularly interesting because of his previous comments about Binance. During testimony on December 14, 2022, he accused the exchange of deliberately undermining FTX. The subpoena could help the defendants review his earlier statements and challenge claims about Binance’s role in FTX’s downfall.
A major development commenced on July 27, 2026, when US Bankruptcy Judge Karen B. Owens rejected motions to dismiss the central fraudulent-transfer claims against Binance and CZ.
This decision allows both sides to request documents, examine evidence, and obtain witness testimony. For FTX creditors, the outcome could have serious financial implications. Recovering the disputed $1.76 billion could strengthen the estate’s ability to compensate those who lost funds.
Binance Hit by Major Security Breach
Meanwhile, the latest development follows the exchange’s significant loss. On October 29, 2026, hackers stole approximately $6.3 billion from the crypto platform. The operation marked the largest crypto heist in history.
During the investigation, both the FBI and U.S. agencies have attributed the attack to North Korea’s Lazarus Group. However, North Korea has formally denied the accusations.
Binance revealed that the hackers used fake job interviews and compromised internal AI tools. The exchange said the hackers gained access to its system through a sophisticated, multi-stage campaign.
It also added that the bad actors targeted its engineers, leveraging social media techniques. Notably, the firm has recovered a significant portion of the stolen $2.3 billion, according to a recent update.
Ephraim Emmanuel | November 6, 2026
Jonathan Agozie | November 2, 2026
