Chiliz founder allocates 38 million CHZ to bailout-affected FTX users

The founders of Chilliz are 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 shock waves across the crypto industry. Various leaders in various crypto platforms are taking steps to inject some certainty amidst the chaos.

Chili’s is extending a helping hand

On November 13, Chiliz CEO Alexandre Dreyfus announced a recovery plan on Twitter. In addition, the founders will allocate 38 million CHZ to the public address, which will compensate up to $10,000 per FTX user who holds CHZ on the exchange.

The executive later added:

“It is still subject to full legal review and approval from the liquidator to provide us a list of users.”

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

Woo Blockchain shared this development in a tweet on November 12:

open wounds

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

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

Now it looks like FTX users have a slim chance of recovering their funds, given that the exchange has about $9 billion in liabilities, while only $900 million in liquid assets.

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

Chiliz CHZ Price Weekly Chart CoinMarketCap
Source: CoinMarketCap

On CoinMarketCap, the local CHZ cryptocurrency was trading at $0.18. It is now down by over 30% since reaching a local high of $0.275 at the beginning of last week.


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