The CEO of leading cryptocurrency exchange Binance, Changpeng Zhao, has said the trading platform is forming an industry recovery fund followingr the collapse of FTX. While more details are set to come soon, Zhao asked other industry players to join the initiative.

Embattled cryptocurrency exchange FTX has said it was investigating “unauthorized transactions” flowing from its wallets, with crypto researchers suggesting over $515 million may have been hacked or stolen.

Crypto.com mistakenly sent more than 320,000 ETH, worth over $400 million, to a rival cryptocurrency exchange last month, according to its CEO Kris Marszalek. The other exchange, Gate.io, returned the funds shortly after.

Top stories in the Crypto Roundup today:

• Binance Starts Forming Crypto Industry Recovery Fund
• FTX Investigates Possible $500 Million Hack
• Crypto.com Accidentally Transferred $400 Million of ETH to Another Exchange

Binance Starts Forming Crypto Industry Recovery Fund

The CEO of leading cryptocurrency exchange Binance, Changpeng Zhao, has said the trading platform is forming an industry recovery fund following  the collapse of FTX. While more details are set to come soon, Zhao asked other industry players to join the initiative.

Tron founder Justin Sun quickly reacted, saying Tron and cryptocurrency exchanges Huobi Global and Poloniex will support Binance in its initiative. The announcement comes in the wake of a liquidity crisis that affected rival exchange FTX, after a leaked balance sheet from Alameda Research revealed it relied heavily on its FTT token and tokens from the Solana ecosystem with low liquidity. What ensued was a bank run on the exchange.

The move comes after Binance walked away from a potential acquisition of FTX citing problems beyond its “control or ability to help” over “mishandled customer funds and alleged U.S. agency investigations.”

Last month, Binance Pool said it was committing $500 million in the form of a lending facility for struggling bitcoin miners.

FTX Investigates Possible $500 Million Hack

Embattled cryptocurrency exchange FTX has said it was investigating “unauthorized transactions” flowing from its wallets, with crypto researchers suggesting over $515 million may have been hacked or stolen.

FTX’s newly instated chief executive officer, John J. Ray III, said in a statement that “unauthorized access to certain assets has occurred” and that the firm was in contact with law enforcement officials and regulators.

The exchange filed for bankruptcy last week after it faced a bank run. As part of the bankruptcy process, it has been moving its cryptoassets to more secure forms of storage.

The full impact of FTX’s collapse is still unfolding. Crypto lending platform BlockFi halted withdrawals this past week as a result of the collapse, while another exchange AAX halted withdrawals over the weekend, claiming the halt was unrelated to FTX’s collapse.

Crypto.com Accidentally Transferred $400 Million of ETH to Another Exchange

Crypto.com mistakenly sent more than 320,000 ETH, worth over $400 million, to a rival cryptocurrency exchange last month, according to its CEO Kris Marszalek. The other exchange, Gate.io, returned the funds shortly after.

Per Marszalek, the transaction was a result of human error, as someone erroneously sent about 80% of the ETH in their reserves to a “whitelisted exchanges.” The funds had been scheduled to move to a new cold wallet. The CEO said:

"It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with the Gate team and the funds were subsequently returned to our cold storage.”

The incident comes at a time in which trust in centralized exchanges has been severely affected as a result of the collapse of FTX. Blockchain data shows that over 90,000 unique transactions have been processed from Crypto.com’s wallets since the incident was spotted.

Last year, a Crypto.com employee erroneously transferred more than $7.1 million to a customer, with the firm later on suing the person for the return of the funds.

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