Binance is targeting $1 billion or more for a previously announced recovery fund to buy distressed crypto assets, CEO Changpeng Zhao said in an interview with Bloomberg Television on Thursday.
“If that’s not enough we can allocate more,” Zhao said, according to the news outlet.
The exchange CEO has been a key figure in the industry the last few months, cementing his position as a key leader, after the fall of FTX and its CEO, Sam Bankman-Fried. Earlier this month, Zhao raised concerns about FTX on Twitter and ditched a plan to acquire it to save it from its financial troubles.
The fallout of FTX's bankruptcy has been felt deeply across the entire industry, leading to other companies like lender BlockFi reportedly preparing for bankruptcy.
Last week, Zhao announced that Binance would be launching a recovery fund "to help projects who are otherwise strong, but in a liquidity crisis."
The exchange will follow a "loose approach where different industry players will contribute as they wish," he said on Thursday. A detailed blog post will come soon.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.