Binance aims to allocate $1 billion for crypto recovery fund

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Binance intends to allocate $1 billion to a proposed industry recovery fund, while its CEO revealed the intention by his US-based business in a new bid for the assets of bankrupt cryptocurrency lending firm Voyager.

Speaking to BloombergTV on Nov. 24, Binance CEO Changpeng Zhao touched on a range of topics in what has been a tumultuous month for the cryptocurrency ecosystem.

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Chief among them was Binance’s proposed Industry Recovery Fund, which aims to provide financial support to promising projects in financial distress. The founder of the exchange came up with the idea in the wake of the now-infamous collapse of FTX.

Related: Binance CEO Denies Reports of Meeting with Abu Dhabi Investors for Crypto Recovery Fund

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

“There has been a back and forth on how to structure it, do we make it a loose fund or a real fund? I think we are going with a loose approach where different players in the industry will contribute as they wish.

The fund will be publicly viewable, according to the Binance CEO, with contributors ready 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 citing a six-month road map he expects the industry to recover.

The report also states that Binance.US is interested in a fresh bid for assets belonging to the now-defunct Voyager Digital. The lending firm was one of a handful in the wake of Terra’s collapse in May 2022.

The CEO of Binance also said that the exchange will reconsider certain assets or businesses related to FTX. Binance considered a deal to buy the exchange in November 2022 before the spectacular collapse of Sam Bankman-Fried.

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