Homecryptocurrency News

Binance to commit $1 billion for crypto recovery initiative

Binance to commit $1 billion for crypto recovery initiative

Binance to commit $1 billion for crypto recovery initiative
Read Time
2 Min(s) Read
Profile image

By Reuters Nov 24, 2022 10:56:11 PM IST (Published)

The move comes at a time when the crypto market is teetering from the collapse of FTX, which is seeking Chapter 11 bankruptcy protection in the United States.

Cryptocurrency exchange Binance said on Thursday it was committing $1 billion to establishing an industry recovery initiative (IRI) to invest in companies from the digital assets sector. The move comes at a time when the crypto market is teetering from the collapse of FTX, which is seeking Chapter 11 bankruptcy protection in the United States.

Recommended Articles

View All

The unraveling of one of the biggest crypto exchanges in the world has also fanned worries around the industry’s continued ability to draw investments from venture capital and private equity giants.
Binance said it intends to ramp up its commitment amount to $2 billion in the near future depending on need.
"We anticipate this initiative will last about six months and will be flexible on the investment structure — token, fiat, equity, convertible instruments, debt, credit lines, etc," the crypto exchange added in a statement.
Zhao said while 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 cascading negative effects of FTX" without giving an exact figure for the fund.
Several crypto firms have been bracing for the fallout from the FTX collapse, with many counting their exposure in millions to the beleaguered exchange.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Previous Article

Bitcoin, Ethereum down over 1% as cryptocurrencies extend losses

Next Article

Explained: Bank runs and why they spell trouble for crypto exchanges

Most Read

Market Movers

View All
Top GainersTop Losers
CurrencyCommodities
CompanyPriceChng%Chng