Binance targets $1 billion crypto recovery fund

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Binance, the world’s largest cryptocurrency exchange, aims to raise around $1 billion in a crypto recovery fund to buy distressed digital assets.

Changpeng Zhao, CEO of Binance, told Bloomberg Television on Thursday that the major exchange is willing to extend the target amount if necessary. The fund will be open to contributions from cryptocurrency industry participants, the CEO added.

Over a week ago, Zhao announced that he was setting up an industry stimulus fund “to further reduce the cascading negative effects of FTX.” The fund will also help “projects that are otherwise strong but in liquidity crisis,” Zhao said.

Encryption issues

The announcement from the leading crypto exchange comes weeks after Bahamas-headquartered cryptocurrency exchange, FTX, filed for bankruptcy protection in the United States after a liquidity crisis and a failed bailout attempt from Binance. New bankruptcy proceedings revelations suggest FTX may owe up to 1 million creditors as once-beloved exchange was mishandled under the direction of Sam Bankman-Fried, its founder and former CEO.

Over the past few months, the crypto markets have been thrown into turmoil by the bankruptcy of major crypto firms. In May, Luna and TerraUST collapsed, wiping out around $60 billion from the cryptocurrency market. In the aftermath of this collapse, crypto asset broker Voyager Digital and digital asset lender Celcius Network went bankrupt.

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FTX initially won the auction to acquire Voyager Digital. However, with the crypto exchange struggling with its crumbling empire, Binance has started to position itself to take over the bankrupt cryptocurrency brokerage firm. On the other hand, cryptocurrency markets continue to experience price declines, with Bitcoin falling earlier this week to its lowest level since November 2020.

Bybit offers support

Meanwhile, Bybit, a Singapore-based cryptocurrency exchange, launched a $100 million fund Thursday to support old and new market markers “during this difficult time.” The exchange plans to provide up to $10 million to institutional clients on its platform as well as dedicated account managers

According to the latest data from CoinMarketCap, Bybit, with $389.5 million in crypto point volume, ranks 11th on the list of largest crypto exchanges. Binance continues to top the charts, with $12.3 billion in crypto spot volume in the last 24 hours.

Binance, the world’s largest cryptocurrency exchange, aims to raise around $1 billion in a crypto recovery fund to buy distressed digital assets.

Changpeng Zhao, CEO of Binance, told Bloomberg Television on Thursday that the major exchange is willing to extend the target amount if necessary. The fund will be open to contributions from cryptocurrency industry participants, the CEO added.

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Over a week ago, Zhao announced that he was setting up an industry stimulus fund “to further reduce the cascading negative effects of FTX.” The fund will also help “projects that are otherwise strong but in liquidity crisis,” Zhao said.

Encryption issues

The announcement from the leading crypto exchange comes weeks after Bahamas-headquartered cryptocurrency exchange, FTX, filed for bankruptcy protection in the United States after a liquidity crisis and a failed bailout attempt from Binance. New bankruptcy proceedings revelations suggest FTX may owe up to 1 million creditors as once-beloved exchange was mishandled under the direction of Sam Bankman-Fried, its founder and former CEO.

Over the past few months, the crypto markets have been thrown into turmoil by the bankruptcy of major crypto firms. In May, Luna and TerraUST collapsed, wiping out around $60 billion from the cryptocurrency market. In the aftermath of this collapse, crypto asset broker Voyager Digital and digital asset lender Celcius Network went bankrupt.

FTX initially won the auction to acquire Voyager Digital. However, with the crypto exchange struggling with its crumbling empire, Binance has started to position itself to take over the bankrupt cryptocurrency brokerage firm. On the other hand, cryptocurrency markets continue to experience price declines, with Bitcoin falling earlier this week to its lowest level since November 2020.

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Bybit offers support

Meanwhile, Bybit, a Singapore-based cryptocurrency exchange, launched a $100 million fund Thursday to support old and new market markers “during this difficult time.” The exchange plans to provide up to $10 million to institutional clients on its platform as well as dedicated account managers

According to the latest data from CoinMarketCap, Bybit, with $389.5 million in crypto point volume, ranks 11th on the list of largest crypto exchanges. Binance continues to top the charts, with $12.3 billion in crypto spot volume in the last 24 hours.

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