Binance creates industry recovery fund to help projects struggling with liquidity

Binance CEO Changpeng Zhao clarified that the project is for other potentially strong projects and not FTX, saying that “liars or fraud” would never qualify.

As the effects of the FTX crisis continue to affect the markets negatively, crypto exchange Binance is creating a fund to help potentially strong projects that are having liquidity issues. 

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

While Zhao did not provide all the information on which projects would qualify, he told teams who believe they may fit the criteria to contact Binance Labs, the exchange’s venture capital arm. He also called upon other industry players interested in co-investing to get in touch with them. “Crypto is not going away. We are still here. Let’s rebuild,” Zhao wrote.

Seemingly confused by the announcement, one crypto community member replied to Zhao’s post, asking why FTX would qualify for the fund. To clarify, the Binance CEO highlighted that the fund is not for FTX, but for other projects within the crypto ecosystem, adding that “liars or fraud never qualify as strong projects.”

Related: Rumors continue to fly surrounding Sam Bankman-Fried and the fall of FTX

As the crypto markets continue to experience turmoil, a known crypto skeptic started to blame crypto billionaires as the reason for slowing down developments in regulating the space. United States Representative Brad Sherman said that efforts by “billionaire crypto bros” in lobbying and contributing to campaigns have been successful in deterring meaningful legislation.

Meanwhile, as Cointelegraph previously reported, FTX’s former CEO Sam Bankman-Fried, three former FTX executives and Alameda Research CEO Caroline Ellison are looking for ways to flee to Dubai, United Arab Emirates (UAE). However, while the plan assumes that the UAE does not have an extradition treaty with the United States, both nations have signed a mutual assistance treaty for dealing with criminals.