CZ Denies Meeting Abu Dhabi Investors For Crypto Recovery Fund
- CZ proposed a recovery fund to prevent events similar to FTX’s liquidity crisis.
- Crypto projects have faced increased scrutiny over their management of investors’ funds after reports emerged claiming FTX used corporate funds to purchase properties in the Bahamas.
- SBF’s parents, Joseph Bankman and Barbara Fried are allegedly identified as signatories on a beach property inside the Old Fort Bay area.
Binance CEO, Changpeng “CZ” Zhao has denied recent claims that he met with investors in Abu Dhabi to raise funds for his proposed recovery fund. The crypto billionaire recently called for a crypto recovery fund that would prevent the sudden collapse of other prominent crypto platforms.
Reports had earlier suggested that the Binance boss had met investors in the Middle East in search of funding for his big idea. Changpeng was said to have met with key figures associated with the United Arab Emirates’ national security adviser, Sheikh Tahnoon Bin Zayed. However, CZ took to Twitter to refute such reports.
Shedding light on CZ’s recent meetings in Abu Dhabi, a Binance spokesperson told CoinDesk,
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.
Since moving to Dubai in October 2021, CZ has consistently pushed for adoption in the region. Binance was authorized to provide virtual asset services to accredited retail and institutional investors in September by Dubai’s Virtual Asset Regulatory Authority. The exchange recently received a similar authorization from Abu Dhabi’s Global Market and Financial Services Regulatory Authority to provide cryptocurrency services.
FTX‘s collapse has raised concerns about liquidity. Several prominent crypto platforms such as Voyager, Celsius, and 3AC have filed for bankruptcy, leaving investors in doubt. FTX’s bankruptcy filings showed that the company owed over $3 billion, despite having barely more than $1.2 billion in cash as of November 20.
However, authorities around the world have been probing the dealings and operations of the bankrupt FTX. So far, investigations have revealed that former FTX CEO and founder, Sam Bankman-Fried, mismanaged corporate funds.
A Reuters report claims that SBF, his parents, and other executives bought homes in the Bahamas worth almost $121 million. According to property documents, Bankman-Fried and his partners own at least 19 properties on the island. The estate reportedly features high-end beachfront homes.
These new reports raise further concerns about how FTX managed more than $1 billion in missing client cash. Some crypto users have labelled the FTX saga ” the biggest crypto scam.”
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
