According to an interview with Chief Executive Officer Changpeng Zhao, cryptocurrency exchange Binance wants to raise about $1 billion for the prospective acquisition of distressed digital assets.
In the interview, Zhao made a suggestion that more money may be allocated. He added, “If that’s not enough, we can assign more.”
Following the collapse of FTX, Zhao said last week at a conference in Abu Dhabi that there was much interest from industry leaders in a recovery fund his business planned to form to assist cryptocurrency ventures experiencing a liquidity crisis.
Without providing the fund’s actual cost, he stated it would “prevent further cascading detrimental consequences of FTX.” After FTX’s collapse, which is now seeking Chapter 11 bankruptcy protection in the US, the cryptocurrency market is in a precarious position.
Numerous cryptocurrency companies have been preparing for the effects of the FTX collapse. Many of them estimate their exposure to the exchange to be in the millions.
Genesis, a significant player in the cryptocurrency market, said last week that it has stopped allowing customers to redeem their loans. Meanwhile, BlockFi is apparently getting ready to file for bankruptcy.