In a bid to acquire money for a cryptocurrency industry recovery fund, last week, Changpeng Zhao, the CEO of Binance, met with investors in Abu Dhabi, according to sources referenced by Bloomberg News.
Zhao spoke with prospective donors including organizations connected with the National Security Adviser of the United Arab Emirates Sheikh Tahnoon Bin Zayed. Although specifics on the scope of the fund and the projects it would sponsor have not yet been determined, it may take a few weeks before the establishment of the fund itself. A representative for Binance said for Bloomberg that the talks’ main topics were international regulatory issues and how Middle Eastern authorities might dominate the world by looking into more stringent proof of custody standards.
Changpeng Zhao, aka CZ, announced the previous week that Binance was creating the industry recovery fund in order to assist projects that are generally solid but experiencing a liquidity issue.
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. More details to come soon. In the meantime, please contact Binance Labs if you think you qualify. 1/2
— CZ 🔶 Binance (@cz_binance) November 14, 2022
In light of the demise of FTX, he too has urged other markets to follow six principles, namely refraining from using too much leverage.