Crypto Recovery Fund: CZ Sought Assistance From These Investors
Efforts are still underway to form a crypto recovery fund in the wake of liquidity crunch after the FTX collapse. A team of Binance executives led by CEO CZ sought funds for the crypto industry recovery fund from some high profile investors in Abu Dhabi last week. According to reports, there is still a lot of work to do before there is any clarity on the magnitude of the fund. Earlier, CZ said there was ‘significant investor interest’ in the recovery fund.
The Crypto Recovery Fund
In recent times, CZ called for crypto exchanges following a practice of publishing proof of reserves, in an effort to show transparency among crypto companies. In a latest, CZ appears to have ramped up efforts to pool in cash for the recovery fund. As per a Bloomberg report, the Binance CEO had recently met with investors in Abu Dhabi last week. Some of the investors the Binance team met include those associated with UAE National Security Adviser Sheikh Tahnoon Bin Zayed. Notably, Zayed looks after a huge network of financial entities. However, no details of the size and plan of the fund have been disclosed so far.
The report quoted a Binance representative as saying,
“CZ’s meetings in Abu Dhabi were all focused on general global regulatory matters — specifically how Middle Eastern regulators could lead the globe by exploring more aggressive proof of custody requirements for crypto exchanges.”
Resolving The Liquidity Crunch
While some of the fund’s details are undecided, it could take several weeks before the recovery project operates in full capacity. The main objective behind the crypto recovery fund is to help promising crypto projects struggling with the liquidity issues. The fund is aimed at helping projects which are otherwise strong but in a liquidity crisis, CZ said while making the announcement.
Recently, companies like Genesis Trading, which was affected with contagion spread by FTX collapse, are also trying to resolve liquidity issues with cash raise.
Also Read: Binance Refuses Any Investment to Save Crypto Lender Genesis, Bankruptcy Ahead?
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