Binance CEO Zhao brushes off $2.1 billion FTX clawback concerns

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• Binance CEO Changpeng Zhao dismissed concerns over whether Binance could handle a potential $2.1 billion clawback of proceeds from an FTX divestment on an appearance with CNBC’s Squawk Box.
  
• Zhao was an early investor in FTX and in disgraced founder Sam Bankman-Fried, but their relationship had chilled as FTX gained market share and grew more competitive.
  
• Binance divested its stake in FTX well before bankruptcy.
  

Binance Chief Executive Changpeng “CZ” Zhao dismissed concerns that his company could have $2.1 billion clawed back as a result of FTX’s bankruptcy proceedings, in an appearance Thursday morning on CNBC’s “Squawk Box,” and said he trusted his lawyers to handle the proceedings.

CNBC’S Andrew Ross Sorkin and Becky Quick pressed Zhao on whether he expected to be able to return that $2.1 billion payment from FTX, which Binance earned when it exited its 2019 Series A investment with FTX, to bankruptcy trustees who will be looking to claw back any fraudulent conveyances made by FTX to outside businesses or investors.

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