Cryptocurrency exchange Binance is targeting a nearly $1 billion fund for a possible purchase of distressed assets in the digital sector, Bloomberg News reported today, citing an interview with CEO Changpeng Zhao.
Zhao indicated in the interview the possibility of allocating more funds. “If this is not enough, we can allocate more”, he said.
Zhao, speaking at a conference in Abu Dhabi last week, said that following the collapse of rival FTX, there was significant interest from industry players in a recovery fund that would launch to help cryptocurrency projects cope with the liquidity crunch. is planning.
He added that such a fund would help “mitigate further negative effects of FTX,” without giving exact figures of the fund.
The crypto market has been staggering following the collapse of FTX, which is seeking Chapter 11 bankruptcy protection in the United States.
Many crypto firms are bracing for the fallout from the collapse of FTX, many of whom count their exposure to the exchange in the millions.
Major crypto player Genesis said last week it had suspended customer redemptions in its lending business, while Blockfi is reportedly preparing to file for bankruptcy.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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