Binance is targeting $1 billion or more for a previously announced recovery fund to buy distressed crypto assets.
Binance plans to contribute $1 billion to a suggested industry recovery fund, and its CEO announced plans for a fresh offer for the assets of the defunct Voyager bitcoin loan company. In an interview with BloombergTV on November 24, Binance CEO Changpeng Zhao discussed a variety of subjects related to the cryptocurrency ecosystem’s turbulent month.
The most important of these was Binance’s proposed industry recovery fund, which aims to give money to potential enterprises in financial trouble. The concept was proposed by the exchange’s founder after FTX’s now-famous collapse.
Zhao stated that the fund’s specifics would be made public on the exchange’s blog in the upcoming days and would have a fairly “loose” structure with contributions from other cryptocurrency ecosystem participants:
“There’s been back and forth on how to structure that — do we make it a loose fund or an actual fund? I think we’re kind of going with a loose approach where different industry players will contribute as they wish.”
According to the CEO of Binance, the fund will be publicly available, and contributors will be required to pay money to a single, transparent blockchain address. While promoting a six-month road map within which he expects to see the industry recover, Zhao mentioned that the fund is anticipated to go live before the end of 2022.
Binance interest US’s in a fresh offer for the now-bankrupt Voyager Digital’s assets was also mentioned. The loan company was one of just a few to fail after the Terra crash in May 2022. Additionally, the CEO of Binance stated that the exchange would think about taking another look at some of FTX’s properties or businesses.
Before the exchange Sam Bankman-Fried founded fell to pieces in a spectacular way in November 2022, Binance considered a deal to buy it out. Zhao mentioned that FTX had made investments in a variety of initiatives, some of which might “be salvageable” and interesting if and when they become accessible.