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March 13, 2023 The Daily Hodl

Binance aims to allocate $1 billion for crypto recovery fund

November 24, 2022 Coin Telegraph

Binance

Binance CEO Changpeng Zhao is aiming to stockpile $1 billion for an industry recovery fund.

Binance intends to allocate $1 billion for a proposed industry recovery fund, while its CEO revealed intent in a new bid for assets of bankrupt cryptocurrency lending firm Voyager by its United States-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 exchange’s founder introduced the idea in the wake of FTX’s now-infamous collapse.

Zhao said that details of the fund were due to be published on the exchange’s blog in the coming days, adopting a fairly “loose” structure with contributions from other members of the cryptocurrency ecosystem:

“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.”

The fund will be publicly viewable according to the Binance CEO, with contributors set to send funds to a central, transparent blockchain address. Zhao also noted that the fund is expected to go live before the end of 2022 while touting a six-month road map within which he expects to see the industry recover.

The report also noted that Binance.US is interested in a new bid for assets belonging to the now-bankrupt Voyager Digital. The lending firm was one of a handful to go bust in the wake of the Terra collapse in May 2022.

The Binance CEO also said that the exchange would consider a second look at some assets or businesses belonging to FTX. Binance considered a deal to buy out Sam Bankman-Fried’s exchange before its spectacular collapse in November 2022.

Zhao said that FTX had invested in a number of projects, some of which may “be salvageable” and of interest if and when they become available.

Binance Forming Crypto Industry Recovery Fund to ‘Reduce Further Cascading Negative Effects of FTX’

November 14, 2022 Bitcoin.com

Binance creates industry recovery fund to help projects struggling with liquidity

November 14, 2022 Coin Telegraph

Coin Telegraph

Binance CEO Changpeng Zhao clarified that the project is for other potentially strong projects and not FTX, saying that “liars or fraud” would never qualify.

As the effects of the FTX crisis continue to affect the markets negatively, crypto exchange Binance is creating a fund to help potentially strong projects that are having liquidity issues.

In a tweet, Binance CEO Changpeng Zhao said that the fund aims to reduce the cascading negative effects of the collapse of FTX by helping projects that the Binance CEO described as “strong, but in a liquidity crisis.”

While Zhao did not provide all the information on which projects would qualify, he told teams who believe they may fit the criteria to contact Binance Labs, the exchange’s venture capital arm. He also called upon other industry players interested in co-investing to get in touch with them. “Crypto is not going away. We are still here. Let's rebuild,” Zhao wrote.

Seemingly confused by the announcement, one crypto community member replied to Zhao’s post, asking why FTX would qualify for the fund. To clarify, the Binance CEO highlighted that the fund is not for FTX, but for other projects within the crypto ecosystem, adding that “liars or fraud never qualify as strong projects.”

As the crypto markets continue to experience turmoil, a known crypto skeptic started to blame crypto billionaires as the reason for slowing down developments in regulating the space. United States Representative Brad Sherman said that efforts by “billionaire crypto bros” in lobbying and contributing to campaigns have been successful in deterring meaningful legislation.

Meanwhile, as Cointelegraph previously reported, FTX’s former CEO Sam Bankman-Fried, three former FTX executives and Alameda Research CEO Caroline Ellison are looking for ways to flee to Dubai, United Arab Emirates (UAE). However, while the plan assumes that the UAE does not have an extradition treaty with the United States, both nations have signed a mutual assistance treaty for dealing with criminals.

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