- Bankman-Fried has stepped down as CEO of FTX Group.
- Binance CEO “CZ” announced the creation of an industry recovery fund.
Following Sam Bankman-Fried’s FTX insolvency proceedings, Binance CEO and co-founder Changpeng Zhao (CZ) stated solid and clear laws are needed for the cryptocurrency sector. CZ, a crypto billionaire thinks that it’s not only the government’s job to ensure consumer safety; it’s everyone’s.
According to Bloomberg, during a meeting of G20 leaders in Bali, Zhao stated, “we’re in a new industry, we’ve seen in the past week, things go crazy in the industry.”
In addition, Zhao said:
“I think the industry collectively has a role to protect consumers, to protect everybody. So it’s not just regulators. Regulators have a role but it’s not 100% their responsibility.”
Fall of an Empire
Bankman-Fried’s FTX Group voluntarily initiated Chapter 11 bankruptcy proceedings in the District of Delaware on November 11, prompting CZ to make the abovementioned statements. The FTX Group, which includes FTX Trading, West Realm Shires Services (FTX US), Alameda Research, and over 130 other connected entities, has filed for bankruptcy.
In addition, Bankman-Fried has stepped down as CEO of FTX Group. Chief Executive Officer responsibilities have been transferred to John Ray III. According to the Bloomberg Billionaire’s index, the loss of Bankman-Fried’s $16 billion in value ranks as one of the largest destructions of wealth in history. By filing for Chapter 11, FTX may take stock of its circumstances and work out a plan to maximize recovery for stakeholders.
Recently Binance CEO “CZ” announced the creation of an industry recovery fund. When the liquidity crisis hits, long-running successful projects can turn to Binance’s recovery fund for assistance.
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