Binance CEO Zhao hints at more funds for distressed assets

According to an interview with Chief Executive Officer Changpeng Zhao, Binance is aiming for a roughly $1 billion fund for the potential purchase of distressed assets in the digital sector.

Zhao hinted at the possibility of allocating more funds in the interview. If that is not enough, we can allocate more money, he said.

Zhao said at a conference in Abu Dhabi last week that he plans to launch a recovery fund that will help cryptocurrencies projects facing a tight squeeze following the collapse of rival FTX.

He said that such a fund would help reduce more cascading negative effects of FTX without giving an exact figure for the fund.

The FTX, which is seeking Chapter 11 bankruptcy protection in the United States, is in teetering after the collapse of the company.

Several crypto firms have been bracing for the fallout from the FTX collapse, with many counting their exposure to the exchange in millions.

A major criptocription giant, Genesis, said last week it had suspended customer redemptions in its lending business, while BlockFi is preparing to file for bankruptcy.