Binance will introduce a new fund to support cryptocurrency businesses experiencing liquidity problems. Earlier today, the CEO of Binance, Changpeng Zhao, tweeted about the strategy. Among the most recent businesses to disclose their stake are the cryptocurrency hedge fund Galois, investor Mechanism Capital, cryptocurrency platform Matrixport, and venture capital firm Paradigm. Zhao, whose tweets about selling FTT helped trigger FTX’s liquidity crisis, recently vowed to be more critical of rivals going forward.
The collapse of FTX to be used as evidence that stricter regulation of the crypto industry is needed. Senator Patrick Toomey (R-PA): “This episode underscores the need for a sensible regulatory regime.” Congressman Brad Sherman, chairman of the Subcommittee on Investor Protection and Capital Markets, said a lack of regulatory clarity—created in part by the Securities and Exchange Commission—was a key reason the situation surrounding FTX was so calamitous. Senator Sherrod Brown (D-OH): “We must think carefully about how to regulate cryptocurrencies and their role in our economy.” Crypto.com CEO Kris Marszalek acknowledged that his exchange “accidentally” sent 320,000 ETH, around $400 million at the time, to a public address registered at a competitor exchange, Gate.io. Gate returned 320,000 ETH on October 29. Cronos, Crypto.com’s native token, is now down more than 50% for the week. Like FTX Crypto.com, it markets itself as a regulated, trustworthy crypto business. Gate is one of the top five exchanges in the world and trades the same token as FTX, which went bust last week. The exchange’s assets were previously frozen last Thursday after being requested by the Bahamas Securities Commission, where FTX is based. The local police department is now involved. When more than $650 million in funds mysteriously departed FTX on Friday night in transactions that FTX US general counsel Ryne Miller referred to as “unauthorised,” an RBPF spokeswoman would not say whether the new investigation was in direct response to those occurrences. Last September, FTX relocated its corporate offices from Hong Kong to the bitcoin-friendly Bahamas.
That’s it for today, see you tomorrow
