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:
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.
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.