See More

Chiliz Founder Allocates 38 Million CHZ to Bailout Affected FTX Users

2 mins
Updated by Kyle Baird
Join our Trading Community on Telegram

In Brief

  • Chiliz announces 38 million CHZ will be sent to public addresses to compensate individual users unable to withdraw from FTX.
  • This is the second 'bailout' of its kind following the FTX collapse.
  • CHZ is still down 30% from a week ago.
  • promo

The founder of Chiliz is allocating 38 million CHZ to individual users who could not withdraw their funds from FTX. Users can now receive compensation of up to $10,000 as part of this initiative. 

The collapse of one of the largest crypto exchanges, FTX, sent shockwaves in the crypto industry. Various leaders across different crypto platforms are taking steps to inject some certainty amid the chaos. 

Chiliz offering a helping hand

On Nov. 13, Alexandre Dreyfus, the CEO of Chiliz, announced a recovery plan on Twitter. Herein, the founder would allocate 38 million CHZ to public addresses to compensate up to $10,000 per FTX user that held CHZ on the exchange. 

The executive later added: 

“This is still subject to complete legal review and approval from the liquidator to provide us with the list of users.”

This initiative from Chiliz comes days after TRON CEO Justin Sun took a similar approach. As BeInCrypto reported, TRON Labs filed an agreement with FTX to support Sun’s TRX recovery plan. Meanwhile, Derivatives exchange Bitget announced a $5 million “builder fund” to help traders damaged in the FTX incident. 

Wu Blockchain shared this development on Nov. 12 in a tweet: 

Open Wounds

On Nov. 12, the already troubled FTX exchange was hacked for over $400 million. Surprisingly, this came just hours after the exchange had declared bankruptcy. This also led to speculations asserting that the hack was an inside job. 

According to Dreyfus, 37 million CHZ was stolen in the hack: 

It is now looking like FTX users have a slim chance of recovering their funds, considering the exchange has nearly $9 billion in liabilities while only holding $900 million in liquid assets.

Furthermore, at the time of this announcement, CHZ remained under heavy selling pressure. 

Chiliz CHZ Price Weekly Chart CoinMarketCap
Source: CoinMarketCap

On CoinMarketCap, the native CHZ cryptocurrency was trading at $0.18. It has now lost more than 30% since hitting a local high of $0.275 at the beginning of last week.

Top crypto platforms in the US | March 2024
Coinbase Coinbase Explore →
AlgosOne AlgosOne Explore →
Chain GPT Chain GPT Explore →
iTrustCapital iTrustCapital Explore →

Trusted

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Shubham1.png
Shubham Pandey
An engineer and an accountant by degree, Shubham ventured into the crypto world to pursue his passion. He believes digital currencies will redefine our economies in the decades to come, which drove his transition into this industry. Shubham has a multicultural background, having lived across India, Qatar, Oman and Australia. He is currently settled in Melbourne. As a News Writer, Shubham aims to actively analyze trends in the crypto world and break it down for everyday readers.
READ FULL BIO
Sponsored
Sponsored