Binance Set Up Sector Recovery Fund To Assist Projects Impacted By Liquidity Issues

Binance CEO Changpeng Zhao insisted that the industry recovery fund is meant for potentially strong projects and not FTX. In his statement, he clarified that “liars or fraud” would never qualify.

As the impact of the FTX exchange crisis continues to affect the entire crypto market negatively, the Binance crypto exchange announced on November 14 that it would develop a fund to support the potentially strong projects that are having different liquidity issues.

In a tweet, Binance CEO Changpeng Zhao said that the fund wants to reduce the cascading negative impacts of the collapse of FTX by helping projects that the Binance CEO described as “strong, but in a liquidity crisis.”

While Zhao never offered all the information on which of the projects would qualify, he told the teams who are convinced that they may fit that criteria to contact Binance Labs, the exchange’s venture capital arm. Notably, he also called upon other sector players interested in co-investing to get in touch with them. Zhao wrote:

“Crypto is not going away. We are still here. Let’s rebuild.”

While somehow confused by that announcement, one crypto community member replied to Zhao’s post, where he asked whether FTX would qualify for that fund. For clarification, the Binance CEO highlighted that the fund is not for FTX, but for other projects within the crypto network, adding that “liars or fraud never qualify as strong projects.”

As the crypto markets continue experiencing chaos, one renowned crypto skeptic was quick to blame the Crypto billionaires as the reason for slowing down developments in regulating the budding space. United States Representative Brad Sherman believes that efforts by billionaire crypto bros” in lobbying and contributing to various political campaigns have been highly successful in deterring any meaningful regulation or legislation.

In the meantime, FTX’s former CEO Sam Bankman-Fried, Alameda Research CEO Caroline Ellison, and three former FTX executives are seeking ways to flee to Dubai, United Arab Emirates (UAE). Nonetheless, while this plan assumes that the UAE does not have an extradition treaty with the US, both nations have signed a mutual assistance treaty for dealing with criminals.