Binance CEO CZ pushes off concerns regarding $2.1 Billion FTX Clawback

In an interview with CNBC’s “Squawk Box,” Binance CEO CZ disregarded any concerns regarding his company having to pay back $2.1 billion as a result of the bankruptcy proceedings of FTX. The latter said that he will let the lawyers handle it. He believes their legal team is perfectly capable of handling the situation. 

In fact, the $2.1 billion payment was earned from FTX when it exited its 2019 Series A investment with FTX, and as expected, the bankruptcy trustees will seek to recover any deceitful conveyances made by FTX to outside businesses or investors.

Notably, according to reports when he was asked if he would be able to handle the situation if someone demanded the  $2.1 billion back, Zhao decided to keep his answer short and simple and stated that they are financially doing okay. 

According to CNBC and based upon the US Bankruptcy Code, if bankruptcy proceedings can affirm that a payment was made by fraudulent means or that a person reasonably should have known that a payment was fraudulent, any beneficiary may have their profits returned by the trustee within a two-year lookback window. CZ told CNBC that the compensation was a mixture of BUSD, BNB, and FTT tokens. Zhao has claimed that the FTT part of the compensation was important but that the company had apparently “forgotten” about it.

According to Zhao, they have an extremely solid revenue. It’s worth mentioning that the lawyers for FTX have not yet responded to any requests for comment.