CZ Denies Soliciting Crypto Recovery Fund in Middle East

  • Binance CEO denied meeting investors to solicit for the recovery fund.
  • CZ says the fund is never designed for liars or fraudsters.
  • The total recovery fund is not yet revealed

Changpeng Zhao, CEO of Binance, has denied meeting investors in UAE to solicit funding for the exchange’s cryptocurrency recovery fund.

According to a Bloomberg story published on November 22, CZ and others linked with Binance discussed soliciting funds for a planned fund targeted at assisting projects with possible liquidity concerns. Zhao and the Binance team reportedly met with potential funders affiliated in UAE, according to a Binance spokeswoman, who stated that the conversations were “focused on general global regulatory problems.” CZ responded to the claim on Twitter, just saying it was “wrong.

Following FTX’s “liquidity crunch” and bankruptcy filing, the Binance CEO first announced the fund on November 14. The crypto exchange did not specify the size of the money. According to FTX’s bankruptcy filings, the company owed more than $3 billion and had little more than $1.2 billion in cash as of Nov. 20. CZ, on the other hand, stated on Twitter that the money was never designed for “liars or fraudsters.”

Binance and CZ became involved in the FTX crisis when the exchange announced plans to liquidate its supply of FTX Token (FTT) and discussed a possible bailout at the request of then-CEO Sam Bankman-Fried. Binance withdrew from the planned transaction less than 48 hours later, FTX declared bankruptcy, and Bankman-Fried resigned.

In other news, Major prospective supporter Binance declined to make the investment after cryptocurrency lending business Genesis stopped customer redemptions. After stopping the redemptions, the troubled firm stated it would look for a $1 billion emergency funding loan. This comes prior to the Wall Street Journal post.

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José is a crypto enthusiast who trades crypto night and day. He loves to share his trading stories and experiences in all his published articles. José likes to hang out and travel to meet new friends. Enjoys sushi, vodka, and tequila.