$1 billion pledged by Binance for crypto recovery

by   |  VIEW 297

$1 billion pledged by Binance for crypto recovery

Binance CEO Changpeng Zhao aims to raise $1 billion in crypto industry recovery fund. Cryptocurrency exchange Binance announced new details on Thursday about its industry recovery fund, which aims to support those struggling after the catastrophic FTX bankruptcy.

Speaking to BloombergTV, Binance CEO Changpeng Zhao touched on a number of topics that have taken place in this tumultuous month for the cryptocurrency ecosystem. In a blog post, Binance said it would commit $1 billion in initial commitments to the recovery fund.

At some point in the future, that amount can be increased to $2 billion, if the need arises. It has also received $50 million in commitments from crypto investment firms, including Jump Crypto, Polygon Ventures and Animoca Brands.

Chief among them was Binance's proposed Industry Recovery Fund, which aims to provide financial support to promising projects in times of financial trouble. The founder of the exchange presented the idea after the now infamous collapse of FTX.

“Each investment opportunity will be reviewed on its own merits by each [industry recovery initiative] participant acting on its own behalf, including appropriate legal assessments,” a Binance spokesperson told Yahoo Finance.

The struggle for survival after the collapse of FTX

Zhao has emerged as a new savior-like figure for the ailing industry, filling the void left by Bankman-Fried, whose firm bought or invested in a number of beleaguered crypto companies, from Voyager Digital to BlockFi, before the collapse.

The fund will be publicly visible to Binance's CEO, and contributors will send funds to a central, transparent blockchain address. Zhao also noted that the fund is expected to start operating before the end of 2022, while presenting a six-month road map within which he expects the industry to recover.

The report also states that Binance.US is interested in a new bid for assets belonging to the now-bankrupt Voyager Digital. The lending company was one of several companies that collapsed following the collapse of Terra in May 2022.

Zhao said that FTX has invested in a number of projects, some of which may be salvageable and interesting if and when they become available.