the brokerage cryptocurrencies binance aims to establish a fund of approximately $1 billion for the potential purchase of distressed assets in the digital assets sector, Bloomberg News reported on Thursday, citing an interview with the chief executive of companyChangpeng Zhao.
Zhao hinted at the possibility of allocating even more resources in the interview. “If that’s not enough, we can allocate more,” he said.
The executive said at a conference in Abu Dhabi last week that industry groups have shown significant interest in a bailout fund that Binance intends to launch to help cryptocurrency companies facing a liquidity squeeze after its rival’s collapse. FTX🇧🇷
He said at the time that such a fund would help “further reduce the negative cascading effects of the FTX”, without providing an exact figure for the fund.
The cryptocurrency market has been facing high volatility after the collapse of FTX, a company seeking judicial protection against creditors in the United States🇧🇷
Several cryptocurrency companies are bracing themselves for the fallout from the FTX collapse, as many had millions of dollars in exposure to the company.
Cryptocurrency platform Genesis last week announced the suspension of withdrawals from its lending unit, while BlockFi is preparing to file for bankruptcy.
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