(Reuters) – Cryptocurrency exchange Binance is targeting a fund of around $1 billion for a potential purchase of distressed assets in the digital sector, Bloomberg News reported on Thursday, citing an interview with Chief Executive Officer Changpeng Zhao.
Zhao hinted at the possibility of providing more funds in the interview. “If that’s not enough, we can allocate more,” he said.
Zhao said, speaking at a conference in Abu Dhabi last week, that there was significant interest from industry players in a recovery fund his company plans to launch to help cryptocurrency projects facing a liquidity squeeze following the collapse of rival FTX .
He said such a fund would help “reduce further negative impacts from FTX” without providing an exact number for the fund.
The crypto market is reeling after the collapse of FTX, which is seeking Chapter 11 bankruptcy protection in the United States.
Several crypto firms have been bracing for the fallout from the FTX collapse, with many counting their million-dollar exposure to the exchange.
Major crypto player Genesis said last week it suspended customer redemptions in its lending business as BlockFi reportedly prepares to file for bankruptcy.
(Reporting by Akanksha Khushi in Bengaluru; Editing by Anil D’Silva)
Source: Crypto News Deutsch