Report Firm Meet with Abu Dhabi Investors Denied by Changpeng Zhao The crypto recovery fund was announced on 14 November following FTX's 'liquidity cruch' and bankruptcy filing
By Saptak Bardhan •
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Changpeng 'CZ" Zhao recently denied a report claiming he met with investors in Abu Dhabi trying to raise funds for Binance's crypto recovery fund.
According to a report by Bloomberg, Changpeng Zhao and other affiliates discussed raising funds for its proposed fund with the aim of helping projects with liquidity issues. CZ and the Binance team reportedly met with investors in United Arab Emirates' National Security Advisor Sheikh Tahnoon bin Zayed.
The crypto recovery fund was announced on 14 November following FTX's 'liquidity cruch' and bankruptcy filing. According to a filing in a US bankruptcy court, FTX owes $3.1 billion to 50 of its biggest creditors. CZ mentioned in his tweet that the fund was never intended for 'frauds and liars'.
To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ ? Binance (@cz_binance) November 14, 2022
Binance had agreed on a non-binding letter of intent to acquire FTX amid its 'liquidity crunch' issues. However, CZ backed out of the deal less than 24 hours as the leading global cryptocurrency exchange stated the reasons as mishandling customer funds, alleged US agency investigations as well as corporate due diligence.
FTX filed for bankruptcy which was followed by the resignation of Sam Bankman-Fried as Binance pulled out of the deal.
