Is Binance CEO Changpeng Zhao a crypto superman?

Since the collapse of FTX CEO Sam Bankman-Fried's bankrupted crypto empire, the industry has been in the Wild West.

Is Binance CEO Changpeng Zhao a crypto superman?
Cryptocurrency exchange Binance founder and CEO Changpeng Zhao speaks at a Binance fifth anniversary event in Paris, France, July 8, 2022. REUTERS/Tom Wilson/File Photo

Since the collapse of FTX CEO Sam Bankman-Fried's bankrupted crypto empire, the industry has been in the Wild West. The crypto contagion from this mess is spreading, and the digital asset brokerage Genesis may also soon face bankruptcy if the cash crisis continues. After the FTX meltdown, the CEO of the world's biggest cryptocurrency exchange Binance, Changpeng Zhao, said on Twitter that the company plans to launch a crypto recovery fund to help otherwise strong firms weather liquidity squeezes. The recovery fund is still short on details, but the crypto savior is slowly putting it into action.

Last week, Zhao spoke at the Milken Institute's Abu Dhabi conference and met with potential investors interested in the recovery fund, including people associated with UAE National Security Adviser Sheikh Tahnoon Bin Zayed, who's in charge of the oil-rich Emirates' business portfolio. Meanwhile, the UAE has emerged as a digital asset hub, and some giant crypto firms have been set up in Dubai already, including Binance. In fact, Zhao moved to Dubai in 2021 and has been building relationships with the UAE's leaders since then. Also, Binance has secured another license to provide custody services to professional clients in Abu Dhabi.


Key comments:

“CZ’s meetings in Abu Dhabi were all focused on general global regulatory matters – specifically how Middle Eastern regulators could lead the globe by exploring more aggressive proof of custody requirements for crypto exchanges,” said a Binance spokesperson.

"Obtaining this license is a pivotal step in the growth of Binance in Abu Dhabi, and a reflection of the city's progressive stance on virtual assets," said Dominic Longman, senior executive officer at Binance Abu Dhabi.

“CZ and Binance are one of the few groups, perhaps the only one, that can fill the current vacuum in terms of clout and size,” said Toby Lewis, the CEO of crypto analytics firm Novum Insights.