Binance Subpoenas O'Leary in FTX Clawback Suit
Binance and Changpeng Zhao seek records from Kevin O'Leary, Michael Lewis and a former Forbes staffer in a $1.76 billion recovery action.
Updated on Nov. 5, 2026 in Financial Crime
Binance Holdings Ltd. and its former CEO Changpeng Zhao have subpoenaed Kevin O'Leary, Michael Lewis and a former Forbes staffer. The subpoenas are part of a lawsuit by a recovery trust seeking to claw back $1.76 billion allegedly fraudulently transferred by FTX co-founder Sam Bankman-Fried.
Why it matters
The filing extends the FTX clawback litigation to third parties beyond the principal defendants, seeking records that may bear on how funds moved before the exchange's collapse. It shows the recovery effort reaching into media and advisory circles connected to the case.
Binance served subpoenas on Steven Ehrlich, Kevin O'Leary and BDO USA PC, and a notice was filed in the U.S. Bankruptcy Court for the District of Delaware. The recovery trust's underlying claim to $1.76 billion has not been adjudicated.
The players
Binance Holdings Ltd.
Binance is a major global cryptocurrency exchange that was co-founded and led by Changpeng Zhao before his departure as CEO.
Changpeng Zhao
Changpeng Zhao is the former CEO and co-founder of Binance, the world's largest cryptocurrency exchange by trading volume.
Kevin O'Leary
Kevin O'Leary is a Canadian-American businessman and television personality best known as a investor on ABC's Shark Tank.
Sam Bankman-Fried
Sam Bankman-Fried is the co-founder of the collapsed cryptocurrency exchange FTX, who was convicted of fraud in 2025.
The details
Subpoenas were served last week by Binance seeking records and information from the named individuals and firms. The notice was filed Wednesday in the U.S. Bankruptcy Court for the District of Delaware as part of the recovery trust's lawsuit.
Timeline
Last week: Binance served subpoenas on the named individuals and firms.
Wednesday: Notice of the subpoenas was filed in Delaware Bankruptcy Court.
Legal Context
The subpoenas extend the clawback litigation that followed FTX's 2022 collapse, a case in which recovery trusts have sought to reclaim transfers made before the bankruptcy. Such third-party discovery is a common step in bankruptcy recovery actions seeking to trace allegedly fraudulent transfers.
Creditors and account holders with claims against FTX's estate may see recoveries shaped by the outcome of clawback suits like this one. The litigation determines how much money returns to the bankruptcy estate for distribution.
The takeaway
Clawback litigation can reach well beyond the original defendants, pulling in advisors, journalists and other third parties. Readers tracking FTX recoveries should watch how the court handles these discovery demands.
Further reading
Explore more Financial Crime coverage for context on how bankruptcy clawback cases unfold.
