The cryptocurrency exchange OKX plans to create a $100 million fund to support projects affected by the liquidity crisis at FTX.
According to representatives of the exchange, the initiative is aimed at qualified market participants experiencing technical, financial and other problems. The fund will help these projects make a smooth migration from the affected platform.
According to Crypto Fund Research, losses of cryptocurrency funds due to the FTX bankruptcy could amount to up to $5 billion. The crisis has affected 25-40% of industry investment vehicles that invested in FTX or its utility token FTT.
Earlier on November 6, Binance CEO Changpeng Zhao stated that the company aimed to divest the FTT token. Assets together with BUSD totaling about $2.1 billion were the result of the company’s exit from its portfolio investment in the platform.
On November 8, Sam Bankman-Fried and Zhao announced a strategic partnership, but on November 10 Binance declined to acquire FTX. The company said it could not resolve the platform’s problems.
According to Bloomberg and WSJ, the platform’s balance sheet shortfall amounted to $8 billion. However Reuters reported a larger figure — $9.4 billion.
On November 11 FTX Group filed for bankruptcy. Sam Bankman-Fried stepped down as CEO.
American regulators began examining ties between FTX and its US subsidiary and Alameda Research. The Department of Justice has also taken an interest in the platform’s activities.
The day before, Binance announced the launch of a fund to mitigate the cascading negative effects of the collapse of FTX on the industry.
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