A Knight In Binance Armour

Market Meditations | November 15, 2022

If you haven’t heard, FTX, the second-largest crypto exchange in the world collapsed earlier this month. When the news initially broke, it seemed Binance CEO Changpeng Zhao (CZ) may emerge to pick up the pieces by acquiring FTX in its distressed state. However, after a deeper dive into the financials, Binance decided against it.

  • Although CZ didn’t purchase FTX, Binance is taking promising steps to soften the blow to the entire crypto industry caused by Sam Bankman-Fried (SBF) & Co. In a tweet on the 14th of  November, CZ said, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis.
  • CZ did not go into detail about which projects would be eligible, but he advised projects who thought they would meet the requirements to get in touch with Binance Labs, the exchange’s venture capital arm. He also encouraged other industry players with cash who want to co-invest to get in touch with them.
  • One member of the community commented on CZ’s post, puzzled by the announcement and questioning why FTX would be eligible for the fund. CZ provided clarity stating that the fund is not for FTX but rather for other projects within the ecosystem and added that liars or fraud never qualify as strong projects.

Meanwhile, as reported by Cointelegraph, FTX’s former and disgraced CEO SBF, three former FTX executives, and Alameda Research CEO Caroline Ellison are looking for ways to flee to Dubai. However, the plan assumes that the UAE does not have an extradition treaty with the United States, but both nations have signed a mutual assistance treaty for dealing with criminals.