Binance aims to allocate $1 billion for the crypto recovery fund

Binance plans to allocate $1 billion for a proposed industry recovery fund, while its CEO revealed its intent in a new bid for assets of bankrupt cryptocurrency lending firm Voyager by its US-based firm.

Speaking to BloombergTV on Nov. 24, Binance CEO Changpeng Zhao touched on a number of topics in what has been a tumultuous month for the cryptocurrency ecosystem.

Chief among these was Binance’s proposed industry recovery fund, which is aimed at providing financial support to promising projects in financial distress. The exchange founder introduced the idea in the wake of FTX’s now infamous collapse.

Related: Binance CEO denies report that company met Abu Dhabi investors for crypto recovery fund

Zhao said details of the fund would be published on the exchange’s blog in the coming days, adopting a fairly “loose” structure with contributions from other members of the cryptocurrency ecosystem:

“There has been a lot of back and forth about how we should structure that, should we make it a separate fund or a real fund? I think we are going for a loose approach where different industry players will contribute as they see fit.”

The fund will be publicly visible, according to Binance’s CEO, with contributors set to send funds to a central, transparent blockchain address. Zhao also noted that the fund is expected to go live before the end of 2022, touting a six-month roadmap within which he expects the industry to recover.

The report also noted that Binance.US is interested in a new bid for assets from now-bankrupt Voyager Digital. The lender was one of a handful to go bankrupt in the wake of Terra’s collapse in May 2022.

Binance’s CEO also said the exchange would consider taking a second look at some of FTX’s assets or companies. Binance considered a deal to buy out the Sam Bankman-Fried exchange before it crashed spectacularly in November 2022.

Zhao said FTX had invested in a number of projects, some of which may be “salvageable” and interesting if and when they become available.