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Bruce B. Nov 26, 2022
Financial Services News
Last active over 7 days
Last active over 7 days
Cryptocurrency exchange Binance announced new details about its industry recovery fund, which aims to prop up struggling players in the wake of FTX's bankruptcy.

Binance said it will devote $1 billion in initial commitments to the recovery fund. It may increase that amount to $2 billion at some point in time, in the future "if the need arises.”

It has also received $50 million in commitments from crypto-native investment firms including Jump Crypto, Polygon Ventures, and Animoca Brands.

Binance CEO Changpeng Zhao shared the public wallet address showing its initial commitment and said: "We do this transparently."

Zhao has emerged as a new savior-like figure for the ailing industry, filling a gap left by Sam Bankman Fried, whose firm had bought or invested in a number of beleaguered crypto firms — from Voyager Digital to BlockFi — prior to its collapse.

Binance anticipates the program will last around six months. It is accepting applications from investors to contribute additional funds, and said it is "flexible on the investment structure" and is accepting contributions in tokens, cash and debt.

"We expect individual situations to require tailored solutions," the company added. Around 150 companies have already applied for support from the fund, Binance said.

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