As the effects of the FTX crisis continue to negatively impact markets, cryptocurrency exchange Binance is creating a fund to help potentially strong projects that are experiencing liquidity problems.
In a tweet, Binance CEO, Changpeng Zhao, said that the fund aims to reduce the cascading negative effects of the FTX collapse, helping projects that the Binance CEO described as “robust, but in a liquidity crisis.”
Although Zhao did not provide all the information about the projects that could be chosen, he told teams they think may fit the criteria to contact Binance Labs, the venture capital arm of the exchange. He also asked other players in the sector interested in co-investing to contact them.. “Cryptocurrency is not going away. We are still here. Let’s rebuild,” Zhao wrote.
Seemingly confused by the announcement, a member of the cryptocurrency community answered to Zhao’s post, asking why FTX would qualify for the fund. To clarify, the CEO of Binance stressed that the fund is not for FTX, but for other projects within the cryptocurrency ecosystem, adding that “liars or fraud never qualify as solid projects.”
As cryptocurrency markets continue to experience turmoil, a well-known cryptocurrency skeptic began blaming cryptocurrency billionaires as the reason for slowing down developments in the regulation of the space. United States Representative Brad Sherman said that the efforts of “crypto billionaires” in lobbying and contributing to campaigns have been successful in deterring meaningful legislation.
Meanwhile, as Cointelegraph previously reported, former FTX CEO Sam Bankman-Fried, three former FTX executives, and Alameda Research CEO Caroline Ellison are looking for a way 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 in dealing with criminals.
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