Binance to launch a recovery fund for projects affected by FTX collapse

Changpeng “CZ” Zhao announced that Binance will launch a crypto relief fund for projects that are “otherwise strong, but in a liquidity crisis” and called upon other industry leaders to join the initiative.

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The collapse of the Bahamas registered crypto exchange FTX and its subsequent bankruptcy filing has sent disastrous shockwaves across the market, with crypto lender BlockFi halting withdrawals and several VC firms — including Sequoia Capital, Multicoin Capital, and Pantera Capital — writing down the value of their FTX holdings to zero.

But steady lads — Changpeng Zhao is coming to the rescue of the crypto industry, filling a vacant position of crypto’s “white knight” left void by now-disgraced Sam Bankman-Fried.

Zhao tweeted about his plan to establish the "Industry Recovery Fund" early on November 14, stating that it will be dedicated to supporting only fundamentally strong projects that are currently facing liquidity crunches.

The plan, however, doesn’t apply to FTX itself — as Zhao clarified in replies to the original tweet, “liars or fraud never qualify as strong projects. This is for other projects in the ecosystem.”

Binance CEO also called upon other industry leaders to co-invest in struggling crypto projects, stating that “crypto is not going away.” In a reply to Zhao’s tweet, Tron CEO Justin Sun pledged his support for CZ’s initiative, vowing to “help good builders and developers to recover from the crisis.”