Binance plans to allocate $1 billion for cryptocurrency recovery fund

By Zhdanov Read 2 min Read 5 Posted on 11/24/2022 Updated on 11/24/2022

Binance will set aside $1 billion for a proposed industry recovery fund, while its CEO has signaled his intention to file a new asset application for the U.S. operations of bankrupt cryptocurrency lending firm Voyager.

On Nov. 24, Binance CEO Changpeng Zhao touched on some of the topics of what has been a tumultuous month for the cryptocurrency ecosystem in an interview with Bloomberg TV.

Chief among these is Binance’s proposed Industry Recovery Fund, which aims to provide financial support to promising projects that are struggling financially. The founder of the exchange came up with the idea after the infamous FTX crash.

Related: Binance CEO Denies Company Said It Met With Abu Dhabi Investors To Create Crypto Recovery Fund

Zhao said details about the fund should be announced on the exchange’s blog in the coming days, with a rather “loose” structure and contributions from other members of the cryptocurrency ecosystem:

“There’s been a lot of discussion about how to structure this, should we make it a free fund or a real fund? I think we’re taking a free approach and different industry players will contribute as they wish.”

According to the Binance CEO, the fund will go public, with donors sending funds to a central, transparent blockchain address. Zhao also noted that the fund is expected to launch by the end of 2022 and touted a six-month roadmap in which he expects the industry to recover.

The report also noted that Binance. The US is interested in making new bids for assets owned by now-bankrupt Voyager Digital. The lender is one of the few to go bankrupt following Terra’s collapse in May 2022.

The Binance CEO also said that the exchange would consider reviewing some of the assets or businesses owned by FTX. Binance is considering acquiring the Sam Bankman-Freed exchange before it collapses in November 2022.

Zhao said that FTX has invested in several projects, some of which may be “rescued” and will generate interest when they become available.

Source of information: Compiled from CRYPTOHAMSTER by 0x Information.The copyright belongs to the author Zhdanov, and shall not be reproduced without permission

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