As the markets continue to be affected by the FTX crisis, Binance is creating a fund to help strong projects that are having liquidity issues. Binance CEO Changpeng Zhao clarified that the project is not for FTX, saying that “liars or fraud” would never qualify.
In a tweet, Binance CEO Changpeng Zhao said that the fund’s purpose is to reduce the consequences of FTX’s collapse by assisting projects that are essentially sound but lack liquidity. He went on to state that teams who believe they qualify should contact Binance Labs while calling upon other industry players interested in co-investing to do likewise. His concluding words were: “Crypto is not going away. We are still here. Let’s rebuild.”
One crypto community member responded to Zhao’s post, confused by the announcement. To clarify, the Binance CEO explained that the fund is not for FTX specifically, but for other projects within the cryptocurrency ecosystem. He added that “liars or fraud never qualify as strong projects.”
As the crypto markets continue to experience turmoil, a known crypto skeptic started to blame billionaires in the space for slowing down the development of regulation. United States Representative Brad Sherman said that lobbying and campaign contributions by “billionaire crypto bros” have been successful in deterring meaningful legislation.
Several reports stated that Sam Bankman-Fried, three former FTX executives, and Alameda Research CEO Caroline Ellison are looking for ways to escape to Dubai. However, their plan falls short as the United States has extradition treaties with the UAE.