The Binance CEO Changpeng Zhao failed to implement the plan to create a $1bn fund to revive the industry after the collapse of FTX. According to Bloomberg.
Zhao’s plan envisioned raising a large sum from major players in the industry. At the G20 summit, the exchange’s head reminded of the responsibility to protect users and urged cooperation.
Binance stressed that about 18 companies participated in the program, but publicly named only nine.
According to Bloomberg, the initiative managed to raise only $64 million. Only one of the announced participants contributed all promised funds.
The arrangement was not structured as a fund. Participants were free to use the money as they saw fit.
“This is a matter of accountability, and there wasn’t much of it in this recovery fund,” said Clara Medalie, Kaiko’s Director of Research.
In total, Zhao’s initiative financed 14 projects, which were not publicly disclosed. The company added that Binance transferred $985 million of the assets invested in the fund back to the corporate treasury and plans to use them for investments.
Public crypto wallets linked to the organization hold about $32.4 million.
Binance continues to face headwinds in the market. In September the exchange’s share of spot trading fell to 34%. The metric has been declining for the seventh month in a row.