Binance creates an industry recovery fund to assist projects that are struggling with liquidity
Changpeng Zhao, Binance CEO, clarified that the project was for other potentially strong projects and NOT FTX. He also stated that “liars and fraud” would not qualify. News The FTX crisis continues to negatively impact markets. Crypto exchange Binance has created a fund to assist potentially strong projects with liquidity problems. Changpeng Zhao, Binance CEO, stated in a tweet that the fund aims at reducing the negative effects of the collapse FTX. It will help projects that Zhao described as “strong but in a liquidity crises.” Zhao didn’t provide details on which projects would be eligible, but he advised teams that they could contact Binance Labs (the exchange’s venture capital arm). Zhao also encouraged other industry players to get in touch with him if they are interested in co-investing. “Crypto will not disappear. We are still here. Let’s rebuild,” Zhao wrote. Seemingly confused by Zhao’s announcement, one member of the crypto community replied to Zhao’s post and asked why FTX would be eligible for the fund. The Binance CEO clarified that the fund was not for FTX but for other projects in the crypto ecosystem. He also stated that fraud and liars do not qualify as strong projects. Related: Rumours continue to circulate surrounding Sam Bankman Fried and the fall of FTXA As the crypto markets continue their turmoil, a well-known crypto skeptic began to blame crypto billionaires for slowing down regulatory developments in the space. United States Representative Brad Sherman stated that the lobbying efforts of “billionaire crypto bros”, who contribute to campaigns, have been successful in deterring legislation. Cointelegraph reported that FTX’s former CEO Sam Bankman Fried, three former FTX executives, and Alameda Research CEO Caroline Ellison, are looking for ways of fleeing to Dubai, United Arab Emirates. The plan assumes that the UAE doesn’t have an extradition treaty to the United States. However, both countries have signed a mutual aid treaty to deal with criminals.