Binance Switches Its $1 Billion Recovery Fund to BTC, ETH, and BNB

Following the collapse of cryptocurrency exchange FTX in November, Binance established an “industry recovery plan” that included $1 billion in BUSD. Binance CEO Changpeng Zhao announced that the funds will now be converted into BTC, ETH, and BNB.

When notorious cryptocurrency exchange FTX collapsed in November, Binance announced the “Industry Recovery Plan” — a fund designed to help struggling cryptocurrency projects in liquidity crisis due to the fallout from FTX. Binance’s plan includes $1 billion worth of Binance USD Coin (BUSD), which can be converted to Bitcoin (BTC), Ether (ETH) and Binance Coin (BNB) at any time. Changpeng “CZ” Zhao recently announced on Twitter that the funds will now be converted.

CZ suggested on the social media platform to convert recovery initiative funds into BTC, ETH, and BNB.

In light of stablecoin and banking changes, #Binance will switch the remaining $1 billion industry recovery plan fund from BUSD to native cryptocurrencies including #BTC, #BNB and ETH. Some money movement will happen on-chain. transparency.

— CZ 🔶 Binance (@cz_binance) March 13, 2023

The scrutiny of BUSD comes as no surprise

With regulatory scrutiny on stablecoins heating up in the US, the decision to switch funds from BUSD to other tokens comes as no surprise. Popular cryptocurrency exchange Coinbase has announced that it will suspend trading in BUSD in less than a month. Coinbase’s decision comes after Paxos Trust said it would stop minting Binance-branded stablecoins, citing regulatory pressure.

Binance stated that it will limit the use of BUSD, and will naturally shift its focus to assets such as BTC, ETH, and BNB. CZ also mentioned in its announcement that the decision to switch funds was made due to changes in stablecoins and banks.

CZ also mentioned transparency, saying that all fund movements will be on-chain, providing wallet addresses and transaction details. The CEO’s nod to transparency may have something to do with recent reports of erratic activity between it and its U.S. subsidiary Binance. us.


— CZ 🔶 Binance (@cz_binance) March 13, 2023

Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.

Source of information: Compiled from CRYPTODAILY by 0x Information.Copyright belongs to the author, without permission, may not be reproduced

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