The head of the Binance crypto exchange, Changpeng Zhao, failed to implement the initiative to create a $1 billion fund to restore the industry after the collapse of FTX. Bloomberg reports this.
Zhao’s plan involved raising a large amount of funds from major industry players. During the G20 summit, the head of the exchange recalled the responsibility for protecting users and called for cooperation.
Binance emphasized that about 18 companies took part in the program, but only nine were publicly named.
According to Bloomberg, the initiative managed to raise only $64 million. Only one of the announced participants invested all the promised funds.
The organization was not structured as a foundation. Participants used the money they received as they pleased.
“It’s an issue of accountability, and there hasn’t been much of that in this recovery fund,” said Clara Medali, research director at research firm Kaiko.
In total, Zhao’s initiative has funded 14 projects that have not been publicly identified. The company added that Binance transferred $985 million of the funds invested in the fund back into the corporate treasury and plans to use it for investments.
About $32.4 million remains in public crypto wallets associated with the organization.
Let us remind you that Binance also continues to experience difficulties in the market. In September, the exchange’s share of spot trading fell to 34%. The figure has been declining for the seventh month in a row.
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