Binance’s Changpeng Zao Marks Potential $1 Billion Fund for Distressed Assets: Report

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Several crypto companies are bracing for the fallout from the FTX collapse.

Cryptocurrency exchange Binance is targeting a fund of around $1 billion for the possible purchase of distressed assets in the digital sector, Bloomberg News reported today, citing an interview with Chief Executive Officer Changpeng Zhao.

Zhao hinted at the possibility of allocating more money in the interview. “If that’s not enough, we can allocate more,” he said.

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Zhao said 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 liquidity problems following the collapse of rival FTX .

He said such a fund would help “mitigate FTX’s further cascading negative effects” without giving an exact figure for the fund.

The crypto market is reeling after the collapse of FTX, which is seeking Chapter 11 bankruptcy protection in the United States.

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Several crypto companies have braced themselves for the fallout from the FTX collapse, many counting their exposure to the exchange in the millions.

Major crypto player Genesis said last week it had suspended customer repayments in its lending business as BlockFi reportedly prepares for bankruptcy.

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