Binance CEO Zhao brushes off $2.1 billion FTX clawback concerns

Binance main enforcement Changpeng "CZ" Zhao dismissed concerns that his institution could person $2.1 cardinal clawed backmost arsenic a effect of FTX's bankruptcy proceedings, successful an quality connected Squawk Box Thursday morning, and told CNBC that helium trusted his lawyers to grip the proceedings.

CNBC'S Andrew Ross Sorkin and Becky Quick pressed Zhao connected whether helium expected to beryllium capable to instrumentality that $2.1 cardinal outgo from FTX, which Binance earned erstwhile it exited its 2019 Series A concern with FTX, to bankruptcy trustees who volition beryllium looking to claw backmost immoderate fraudulent conveyances made by FTX to extracurricular businesses oregon investors.

"Would you beryllium capable to grip it if idiosyncratic asked you for $2.1 cardinal back," CNBC's Becky Quick asked him.

"We are financially okay," Zhao said, evading a consecutive answer.

If bankruptcy proceedings tin found that a outgo was made done proceedings of fraud oregon that an idiosyncratic should person reasonably known that a outgo was fraudulent, immoderate beneficiary successful a two-year lookback model tin person their gains clawed backmost by the trustee.

"Are you prepared to nonstop that wealth to them?" Sorkin asked Zhao.

"I deliberation we'll permission that to the lawyers. I deliberation our ineligible squad is perfectly susceptible of handling it," Zhao responded earlier attempting to pivot distant to FTX's well-documented spending habits.

Zhao told Sorkin that the repayment was a operation of BUSD, BNB, and FTT tokens. Zhao claimed that the FTT information of the repayment was important but that the institution had "forgotten" astir it.

"We person precise coagulated revenue," Zhao said.