Binance and Changpeng Zhao subpoena Kevin O'Leary in $1.76bn FTX lawsuit
The exchange and its founder are seeking records from the television personality as part of a legal dispute involving the collapsed FTX platform.
Key takeaways
- 1Binance and CZ subpoenaed Kevin O'Leary on 5 November
- 2The request for records is part of a $1.76bn lawsuit involving FTX
- 3Binance manages $171bn in assets and recently lost $6.3bn to a hack
Binance and founder Changpeng Zhao subpoenaed Kevin O'Leary on 5 November in a $1.76bn lawsuit involving the collapsed FTX exchange. The legal action seeks records and information from the investor and television personality. O'Leary acted as a spokesperson for FTX before the firm failed in 2022.
Degen News said the request for documents is part of an effort by Binance and Zhao to collect evidence for the multi-billion dollar case. O’Leary, a regular on the show Shark Tank, previously disclosed his paid role with FTX and its former management. Watcher Guru reported that the subpoena covers specific information held by O'Leary that is relevant to the $1.76bn claim.
The legal step comes as Binance manages $171bn in assets, according to YourKhabri data. The exchange lost $6.3bn in a hack on 29 October, an event Zhao called a major disaster for the industry. The FBI and Secret Service are investigating that loss while Binance continues its legal battle with the estate of FTX, which was once its largest competitor.
The subpoena suggests that Binance is building its case in the ongoing FTX litigation. Traders will watch if other former FTX promoters receive similar legal demands from Zhao's lawyers. The outcome of the $1.76bn lawsuit will likely affect the recovery of funds for creditors and the financial position of Binance as it faces regulatory scrutiny and the recent multi-billion dollar hack.
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