Binance to Set Up Industry Recovery Fund Following FTX’s Collapse, Says CZby Fintech News Singapore November 15, 2022
Cryptocurrency exchange giant Binance’s Chief Executive Officer Changpeng ‘CZ’ Zhao announced plans for an industry recovery fund amidst FTX’s staggering collapse in recent weeks.
CZ also called upon other like-minded industry players with resources to co-invest in the fund to help rebuild the crypto industry. However, the size of the fund was not disclosed.
According to the tweet, the industry recovery fund was formed with the intention to aid projects that are facing liquidity issues.
Those who are interested in this can reach out to Binance Labs, the crypto exchange’s venture capital and incubation arm, to see if they meet the requirements.
In June this year, Binance Labs had closed a new US$500 million investment fund supported by global institutional investors such as DST Global Partners, and Breyer Capital.
CZ did not mince his words at a recent Twitter AMA event where he blamed former CEO Sam Bankman-Fried (SBF) for FTX’s collapse. The crypto exchange has filed for bankruptcy and is under scrutiny by federal authorities.
Markets Insider quoted CZ saying that SBF had lied to his employees, users, shareholders, and regulators all around the world and that he should take most of the blame for what had happened.
While he conceded that the crypto exchange cannot step in every time something goes wrong in the industry, he felt that FTX’s investors, which includes Binance, need to accept some responsibility as they had all failed to notice the problems.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022