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Binance creates recovery fund for crypto projects in a cash crisis; Elon Musk: “A long crypto winter awaits Bitcoin;” US lawmaker blames ‘billionaire crypto bros’ for delayed legislation

Binance creates recovery fund for crypto projects in a cash crisis  

Changpeng Zhao, CEO of Binance, announced that they would create an industry recovery fund in a new post on his official Twitter account.

Aiming to reduce the negative effects of the collapse of rival crypto exchange FTX, the fund would help crypto projects and companies in a cash crisis.

Pointing out that the fund details will be shared soon, Zhao also underlined that projects and companies that think they are eligible could contact Binance Labs.

Binance’s CEO also invited other leading figures in the industry to invest in the fund. Zhao explained, “Crypto is not going anywhere. We are still here. Let’s rebuild the industry”.

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Elon Musk: “A long crypto winter awaits Bitcoin”

Elon Musk claims that Bitcoin will survive during the downtrend triggered by the FTX case but a long crypto winter still awaits it.

Bitcoin dropped below $16,000 for the first time in the last 2 years.

In the meantime, researchers at JP Morgan, the largest US bank by market value, predicted that Bitcoin could fall to the level of 13 thousand dollars due to the FTX crisis.

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US lawmaker blames ‘billionaire crypto bros’ for delayed legislation

US congressman Brad Sherman issued a statement addressing the cryptocurrency exchange FTX crisis stressing the need for regulators to take urgent and aggressive measures.

Sherman made the following statements on the subject:

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“The unexpected collapse of one of the world’s largest crypto companies this week was a dramatic demonstration of both the risks inherent in digital assets and the critical vulnerabilities in the industry that has grown around them.

“For years, I have argued that Congress and federal regulators need to take an aggressive approach despite the many threats to our society that cryptocurrencies pose.

“I believe it is now more important than ever for the SEC to take decisive action to end the regulatory gray area in which the crypto industry operates.” 

The statement comes amid the reports that FTX’s CEO Sam Bankman-Fried donated $39.8 million to both Democratic and Republican parties in the last 2022 US midterm elections, making him the entire election’s sixth largest donor.

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