Binance CZ CEO Announces Launch of Industry Recovery Fund

Binance CEO Changpeng Zhao aka CZ revealed that his company will form an industry recovery team with the aim of mitigating the negative effects associated with the FTX crash. Sam Bankman-Fried’s FTX filed for bankruptcy on Friday after a week of seeing clients pull assets and Binance abandoning a bailout offer. Bankman-Fried and his company are being investigated by the Justice Department and the Securities and Exchange Commission. CZ also welcomes other industry participants who would like to invest in the partnership.

“In order to reduce the negative effects of FTX, Binance is creating a fund to restore the industry, to help projects that are otherwise strong, but in a liquidity crisis. More details are coming soon. In the meantime, please contact Binance Labs if you think you are eligible,” on Twitter Zhao.

Tron founder Justin Sun looking for support and participate in the Binance CEO’s plan to restore the market. He believes that it will help good builders and developers to recover from this crisis.

Other organizations including Celsius’ main investor Simon Dixon are interested to join the fund and contributed to making it stand out from the crypto community. A notable Twitter user in the space, Crypto King, also asked CZ if FTX is worth it as a power but in the liquidity crisis. The CEO of Binance responded saying “Liars or frauds never qualify as solid projects. This is due to other projects in the ecosystem.”

The development comes after crypto prices plummeted and institutional investors lost confidence and trust after major crypto exchange FTX filed for Chapter 11 bankruptcy.

It is also worth remembering that Binance, in October, revealed a $500 million (approx. Rs. 61.5 lakh) loan portfolio For Bitcoin miners, as a combination of energy costs, low Bitcoin prices, and higher than ever mining difficulty is putting pressure on the industry. The company said that its project is designed to provide “secured debt financing services to both legitimate and private blue-chip Bitcoin and digital asset infrastructure companies around the world.”