Binance intends to allocate $1 billion to a proposed industry recovery fund, as its CEO revealed the intention in a new bid for the assets of bankrupt cryptocurrency lender Voyager by its US-based business.
Speaking to BloombergTV on Nov. 24, Binance CEO Changpeng Zhao touched on a number of topics in what has been a tumultuous month for the cryptocurrency ecosystem.
Chief among them was Binance’s proposed Industry Recovery Fund, which is aimed at providing financial support to promising projects in financial distress. The founder of the exchange introduced the idea in response to The now infamous FTX collapse.
Zhao said details of the fund were to be published on the exchange’s blog in the coming days, adopting a relatively “loose” structure with contributions from other members of the cryptocurrency ecosystem:
“It was back and forth about how to structure it, do we make it a loose fund or a real fund?” I think we’re going with a free approach where different industry players will contribute as they wish.”
According to Binance’s CEO, the fund will be publicly accessible and contributors will send funds to a central transparent blockchain address. Zhao also noted that the fund is expected to launch by the end of 2022, offering a six-month roadmap in 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 company the now bankrupt Voyager Digital. The loan company was one of the few that went bankrupt in Terry’s wake collapse in May 2022.
The CEO of Binance also said that the exchange will consider taking a second look at some assets or businesses belonging to FTX. Binance considered a deal to buy out the Sam Bankman-Fried exchange before its spectacular collapse in November 2022.
Zhao said FTX has invested in a number of projects, some of which may be “salvageable” and interesting if and when they become available.