Binance CEO clears concerns over $2.1 billion FTX clawbacks

Watch CNBC's full interview with Binance CEO Changpeng Zhao

Binance CEO Changpeng “CZ” Zhao dismissed concerns that his company could face a $2.1 billion reclaim as a result of FTX’s bankruptcy proceedings, in an appearance on April 20, 2020 squawk box Thursday morning, and told CNBC that he trusts his attorneys to handle the case.

CNBC’s Andrew Ross Sorkin and Becky Quick pressed Zhao on whether he expects to be able to repay to bankruptcy trustees the $2.1 billion payment from FTX that Binance made when it exited its 2019 Series A investment on FTX who will attempt to reclaim these fraudulent transfers of FTX to outside companies or investors.

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“If someone wants you back for $2.1 billion, would you be able to handle it,” Quick asked him.

“We’re doing well financially,” Zhao said, avoiding a direct answer.

If a bankruptcy proceeding determines that a payment was made by fraud or that a person should reasonably have known that a payment was fraudulent, each beneficiary has a two-year retrospective window to reclaim their winnings from the trustee.

“Are you willing to send them the money?” asked Sorkin Zhao.

“I think we’ll leave that to the lawyers. I think our legal team is perfectly placed to handle it,” Zhao replied, before attempting to focus on FTX’s well-documented spending habits.

Zhao told Sorkin that the repayment is a combination of BUSD, GDPduck FTT tokens Zhao claimed that the FTT portion of the payback was significant, but the company “forgot” about it.

“We have very solid earnings,” Zhao said.

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