Measures Taken By Crypto Exchanges To Support the Industry After FTX Collapse

The bankruptcy of the FTX crypto exchange caused serious harm to the entire crypto industry. According to various sources, the debt of the exchange to investors and users has already exceeded $3 bln. It is obvious that FTX will not be able to return all funds, so a number of crypto exchanges have already offered their support to affected clients and investors. We checked the statements of various crypto companies ready to support FTX traders and what funds they plan to allocate.

Binance

CEO Changpeng Zhao noted on his Twitter page that he is ready to form a special fund to support blockchain and crypto projects that are experiencing liquidity problems. CZ also recommended that all companies "become more transparent and work closely with regulators." In his opinion, this approach will make the industry more transparent and safe for users and investors, encouraging other large companies to participate. He later said that about 5 organizations had already contacted him to discuss cooperation. The other day, the head of Binance announced that the size of the fund will be $1 Bln and will be used to acquire distressed digital assets. It also became known that Binance replenished its reserves by 140,000 $BTC, which increased the number of $BTC under its control to 586,488.

Bitget

Bitget was one of the first to react to events in the industry and offered its help to traders, investors, and influencers affected by the collapse of FTX. Especially for these purposes, the company formed its own fund of $5 Mln, from which users could receive partial or full compensation. Victims can apply for damages on the exchange's website. At the same time, Bitget also increased the size of its own insurance fund from $200 Mln to $300 Mln. These funds are allocated in case of unforeseen situations on the market, such as the liquidation of coin issuing companies, the collapse of large exchanges, and more.

Huobi

The initiative of Bitget and Binance was supported by the new owner of the Huobi crypto exchange, Justin Sun, who issued a statement that he was ready to allocate funds to support the industry, as well as help “good engineers and developers” survive the crisis. The owner of Tron and the current owner of Huobi is ready to allocate $1 bln to eliminate problems in the crypto market. At the height of the crisis, Huobi and Tron DAO promised to exchange Tron ecosystem tokens at a 1:1 ratio in case users were unable to withdraw them from their FTX accounts. The exchange also conducted a Merkle Tree Proof of Reserves (PoR) audit, during which it turned out that Huobi has 32,000 $BTC, 274,000 ETH, and 820 million USDT, as well as about 9.7 billion TRX tokens.

OKX

Crypto platform OKX also announced plans to create a fund with $100 mln in assets to support projects affected by the FTX liquidity crisis. According to representatives of the exchange, the initiative is aimed at qualified market participants experiencing technological, financial, and other problems. Later, the company, along with others in the industry, announced the launch of the Proof of Reserves certificate, which can be used to verify information about the availability of reserves and user funds on the exchange. All details are published on a special page at the OKX website.