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Citing sources familiar with the matter, the Bloomberg report provided some details of CZ and the Binance team’s meeting with the potential investors.
Changpeng Zhao of crypto exchange Binance has denied meeting with investors in Abu Dhabi on a crypto industry recovery fund. The Binance chief quashed the news that he and some other deputies met with the middle east investors to raise cash. On the 22nd of November, Bloomberg reported that CZ and others affiliated with Binance were seeking to generate some money for the proposed fund. According to the report, the fund aims to back projects that are on the edge of liquidity.
Binance CEO Denies Meeting Abu Dhabi Investors
Citing sources familiar with the matter, the Bloomberg report provided more details of CZ and the Binance team’s meeting with the potential investors. The group reportedly discussed with potential backers related to United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed. In reaction to a tweet about the meeting between Binance and Abu Dhabi investors to secure cash for an industry recovery fund, CZ replied, “False.”
Meanwhile, a Binance spokesperson said the meetings were on global regulatory matters. The representative added they also discussed the way Middle Easter regulators “could lead the globe by exploring more aggressive proof of custody requirements.”
At the same time, the Binance CEO announced the creation of an industry recovery fund to help projects battling with liquidity. He wrote on Twitter:
“To reduce further cascading negative effects of FTX, Binance is forming an industry recovery fund, to help projects who are otherwise strong, but in a liquidity crisis… Also welcome other industry players with cash who wants to co-invest. Crypto is not going away. We are still here. Let’s rebuild.”
In addition, CZ called on projects in a liquidity crisis to reach out to its VC arm Binance Labs. He also clarified that FTX does not qualify for the fund, adding that “liars or fraud never qualify as strong projects.” Initially, Binance agreed to buy FTX following the collapse of the FTT token. Zhao revealed that it had signed a non-binding LOI with the intention to fully acquire the distressed crypto firm. However, Binance pulled out of the deal less than 48 hours later. CZ mentioned that there were probably other people that declined to buy FTX before he considered the option.
Just as the Binance chief denied meeting with investors in Abu Dhabi on the recovery fund, he also said he was not part of FTX’s collapse. Rather, Zhao said he was also a victim of the crumble.
Both Binance and FTX attracted regulatory attention amid the ongoings. While regulatory authorities investigate FTX on mismanagement of funds, worldwide regulators are looking into Binance to check if it overstepped antitrust laws.