Binance chief Changpeng Zhao (CZ) has announced on Twitter that the firm will launch “an industry recovery fund” to help limit the impact of the collapse of FTX and the rest of Sam Bankman-Fried’s cryptocurrency empire.
Details are still sparse but Binance claims that its intention is to help strong companies that are experiencing a liquidity crunch. No specific companies are mentioned, but the announcement does say that other industry members are encouraged to join Binance in this venture if they choose.
Companies interested in receiving funds are told to reach out to Binance Labs, the venture capital arm of Binance. No details have been provided on the size of the fund, or what types of investment they will be making.
Zhao has previously announced attempts to help save the industry from the collapse of FTX, including a non-binding offer to purchase FTX that he walked away from. It’s unclear how much Binance will be willing to commit to this fund, and it’s even more unclear if that amount will be sufficient to slow the damage from FTX.
Amidst the collapse of an investment firm and exchange with conflicts of interest, Zhao suggesting the rest of the industry should receive investment from his firm connected to his exchange seems counter-intuitive.
Protos has reached out to Binance Labs for further details and will update if we hear back.