Changpeng Zhao, chief executive of crypto exchange Binance, has denied a report claiming he met with investors in Abu Dhabi in an effort to raise cash for the company’s cryptocurrency recovery fund.
According to a Bloomberg report on November 22, CZ and others associated with Binance discussed raising cash for a proposed fund aimed at helping projects with potential liquidity problems. Zhao and the Binance team reportedly met with potential backers associated with UAE National Security Advisor Sheikh Tahnoon bin Zayed, while a Binance spokesperson said the meetings were “focused on general global regulatory matters.” CZ pushed back against the report on Twitter, saying it was simply “fake”.
First the CEO of Binance the fund announced On November 14th, after FTX “trapped liquidity” and filed for bankruptcy. It’s unclear how big the crypto exchange intended the fund to be. FTX Insolvency Notice suggested by the debtor company more than $3 billion, while it had just over $1.2 billion in cash as of Nov. 20. he added on Twitter that the fund was never meant for “liars or cheats”.
To reduce further cascading negative effects of FTX, Binance is creating an industry recovery fund to help projects that are otherwise strong but in a liquidity crisis. More details coming soon. If you think you qualify, please contact Binance Labs. 1/2
— CZ Binance (@cz_binance) November 14, 2022
Binance and CZ then became embroiled in the FTX debacle announcing the exchange scheduled for liquidation his supply of FTX token (FTT) and discussing possible assistance at the request of then CEO Sam Bankman-Fried. Binance withdrew from a potential deal less than 48 hours later, FTX filed for bankruptcy and Bankman-Fried resigned.
“If we can’t help him, there’s probably no one else to help him,” CZ said on Nov. 17, referring to call Bankman-Fried regarding FTX. “Several people probably passed on the deal before us.
Headquartered in Dubai, CZ has been steadily pushing for adoption in the Middle East since October 2021. In September, the Dubai Virtual Asset Regulatory Authority gave Binance the go-ahead offer virtual asset services to qualified retail and institutional investors. Abu Dhabi Global Market and Financial Services Regulatory Authority Binance granted similar consent to offer crypto services in November.