Binance’s Zhao Announces Potential $1 Billion Acquisition for Distressed Assets – Bloomberg News via Reuters

© Reuters. FILE PHOTO: Changpeng Zhao, CEO of Binance, attends the B20 Summit, ahead of the G20 Leaders’ Summit, in Nusa Dua, Bali, Indonesia, on November 14, 2022. REUTERS/Willie Kurniawan

(Reuters) – Cryptocurrency exchange Binance aims to create a nearly $1 billion fund to buy distressed assets in the digital sector, Bloomberg News reported Thursday, citing an interview with CEO Changpeng Zhao.

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

Speaking at a conference in Abu Dhabi last week, Zhao said there was a lot of interest from industry players in the recovery fund his company plans to launch to help cryptocurrency projects facing liquidity pressures, following the collapse of rival FTX.

He said such a fund would help “reduce further negative cascading effects of FTX” without giving an exact number for the fund.

The crypto market is reeling after the collapse of FTX, which is seeking Chapter 11 bankruptcy protection in the US.

Many cryptocurrency companies are preparing for the fallout from the FTX collapse, with many counting their exposure to the exchange in the millions.

Major crypto player Genesis said last week that it has halted customer refunds in its lending business, while BlockFi is said to be preparing to file for bankruptcy.

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