The FTX bankruptcy forces Binance to start a $1 billion recovery fund that could become $2 billion if the market needs it.
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Binance recovery fund for FTX revealed (Reuters)
Famed cryptocurrency exchange Binance revealed updated details about its industry recovery fund on Thursday, which intends to support struggling players in the aftermath of FTX’s disastrous bankruptcy.
Binance stated in a blog post that it will contribute $1 billion to the recovery fund as a first pledge.
The company also noted that it may expand that sum to reach $2 billion if needed.
Additionally, investment companies focused on cryptocurrencies including Jump Crypto, Polygon Ventures, and Animoca Brands have committed $50 million to the project.
We do this honestly, stated Binance CEO Changpeng Zhao as he published the public wallet address demonstrating the company’s initial pledge.
It is worth reminding that Binance created the fund in an effort to support the cryptocurrency market after FTX, the exchange founded by businessman Sam Bankman-Fried, declared bankruptcy earlier this month.
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