With all of the information about FTX out there it would seem like there could not be much more to learn. Like an onion though the deeper we dive into this complete and utter implosion the more issues that emerge that will cause the fallout from FTX's demise to pour into various other industries. We have seen some of this with FTX's partnerships, particularly the Golden State Warriors and the Miami Heat Area deal. Even SBF's "personal" purchase of 9.6% of Robinhood months ago is now being pulled into question about whose funds might have gone to that purchase.

Since FTX currently has such an extreme asset shortfall billions of dollars wide there is really only one way to try and cover this unless they find a secrete vault full of gold. That way is to utilize a bankruptcy mechanism called a clawback. Examples of this range from donations or large payments to executives to the company buying out partners or assets. The purpose of these is to try and get assets back to those that were devastated by the collapse and try to make those with their crypto accounts not frozen and empty whole again. 

There are various examples that cover multiple industries that we currently know about right now. Two though stick out compared to the other divestments that FTX will try to execute to shore up its balance sheet. The first one should not be a huge surprise and it is the donations that various politicians have received on both sides of the isle. When testifying before Congress current FTX CEO John Ray III commented on this and informed Members that even if they donated the money they received from FTX like many have pledged to do that they would still be held responsible when FTX starts executing clawbacks. Some people have found issue with this surprisingly since the FTX's current team wants to make whole account holders before institutional or major investors. This money would then go back to the people that is has absolutely devastated. 

The largest clawback though has been met with what I would call confusion or disregard. When FTX starts going after the various people and companies to recapture missing cash a substantial amount could be reclaimed from Binance. CZ has been questioned about this because due to the $2.1 billion payment it received from FTX which was a mixture of FTT token and more importantly BUSD, Binances stablecoin. Clawbacks can happen up to two years after the business transaction closes which is why Bianance is still facing the $2.1 billion return.

When faced with these questions CZ has not handled the situation as one would expect from a major businessman. He has stated that Bianace will be fine financially and that the lawyers will address it if and when it comes up. Given how SBF would issue dismissive comments like this as well it does leave a lot to be desired answer wise. They may be a private company but if you want to assure people when the industry has been melting down opening up your books would help. When they showed their proof of reserves early it was quickly dismissed due to Bianance transferring their funds around and then the highly reputable company that handled their audits quit and shut down their whole crypto department sending shockwaves again.  

The exact amount of money that could be clawed back isn't exactly known and will take time to really get ahold of just like how big their shortfall is is always a question in itself. In the same vein I would assume that a few billion will be recovered this way and hopefully will help considerably close the gap to lessen the losses. Overall this is just going to be one step of many to try and help remedy the situation. It will also thrust Bianance and its true health into the public limelight at a scale that they have never been before. Binance will be able to prove once and for all if they are as financially sound as they have presented themselves to both the public and regulators. 

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