Binance CEO Changpeng Zhao (CZ) denied the crypto exchange would have a hard time dealing with clawback or a US$2.1 billion refund of FTX’s investment returns.
Binance was an early investor in crypto exchange FTX and former CEO Sam Bankman-Fried, but that relationship strained when FTX started getting competitive. Binance managed to cash in on their investment before FTX declared bankruptcy.
Changpeng Zhao Confident Binance Still Healthy
In an interview with Andrew Ross and Becky Quick on the Squawk Box show CNBCCZ was pressed for Binance’s ability to return US$2.1 billion from FTX.
Binance got those funds as a result exit FTX Series A investment in 2019. The funds will be given to requesting FTX victims clawback any unauthorized giving of funds by FTX to other businesses or investors.
It is known, the United States authorities are suing the former CEO of FTX Sam Bankman-Fried for a number of scams. SBF was charged with securities breach, money transfer fraud, conspiracy, money laundering and violation of political campaign finance regulations.
SBF has been detained by the government of the Bahamas Islands, where he is domiciled, at the request of the US and will face trial early next year.
Quick asked CZ if Binance could afford it if the FTX victim asked clawback valued at US$2.1 billion. Instead of giving a clear answer, CZ said the company was in a strong financial position.
He added that Binance’s lawyers can handle requests clawback when that happens.
US law regarding the bankruptcy code states, if the FTX bankruptcy court can prove that there has been a fraudulent provision of funds where the recipient of the funds knows the funds have an illegal source, then the recipient of the funds within the past two years may be subject to prosecution. clawback by FTX victims.
When asked by Sorkin about Binance’s readiness to return clawback, CZ answered the lawyers would handle the case.
“I think our legal team is more than ready to handle the request,” CZ replied before he continued discussing the expenses made by FTX.
Changpeng Zhao explained that the refund involved a combination of the crypto assets Binance USD (BUSD), Binance Coin (BNB) and exchange token FTX (FTT).
He also claims FTT takes up the largest portion of the fund but Binance has forgotten about that because Binance has very strong revenues. [ed]