The Chief Executive Officer (CEO) of Binance, Changpeng Zhao (CZ) has reportedly established a recovery fund to support companies facing obstacles such as the recent FTX crisis.
As such, Binance doubled its fundraising plan from $1 billion to $2 billion.
However, it should be noted that CZ and co-investors have joined forces in creating a crypto recovery fund to help any digital asset-related project experiencing liquidity problems.
In fact, Polygon Ventures, Jump Crypto, Animoca Brands, Aptos Labs, Kronos, GSR and Brooker Group have agreed to raise $50 million while Binance has yet to set its contribution amount but it is estimated to be more than other companies.
Although Binance intends to further strengthen the crypto market, a statement on its Twitter account has raised questions among investors in the wake of the FTX incident.
Following that, lawmakers from the United Kingdom (UK) Parliament have ordered CZ to explain in detail the content of his tweets that could have a negative impact on FTX.
It is understood that CZ has compared the tokens belonging to FTX, FTT with the Luna token which has already suffered a collapse and resulted in the price of FTT continuing to shrink by 13.3%.
