Binance Adds Another $1B to Crypto Industry Recovery Fund

• Binance increases the recovery fund meant to prop up crypto firms that might have cash shortages from $1 billion to $2 billion.
• $50 million in commitments was transferred to Binance from crypto investment firms including Jump Crypto, Polygon Ventures, and Animoca Brands.

The Binance recovery fund launched by the CEO, Changpeng Zhao aims to support struggling players in the crypto space. According to CZ, he anticipates the fund program will last around six months.  Binance is accepting applications from investors to contribute additional funds.

In a statement, Binance said that it had devoted $million to the fund. Recently, Binance increased the amount to $2 billion.

Meanwhile, the Tron founder Justin Sun, Huobi, and investor Simon Dixon look to support and participate in Binance CEO’s initiative to recover the market. Binance has received $ 50 million from companies that had pledged the amount including Jump Crypto, Polygon Ventures, and Animoca Brands.

Seeing a freshly funded wallet with $1b $BUSD.

Recovery fund announcement soon? 👀 @cz_binance pic.twitter.com/uAmVU3Gmr0

— Miles Deutscher (@milesdeutscher) November 24, 2022

The program is an attempt to prop up the industry after the crypto influencer Sam Bankman-Fried’s exchange FTX filed for Chapter 11 bankruptcy earlier this month on the 11th and also announced the resignation his resignation. SBF was accused of mishandling customer funds on the exchange and using them to finance the operations of trading firm Alameda Research, another company he founded.

Binance’s CEO remains bullish and asserts that the industry will be on its feet and become stronger. Several crypto influencers believe the FTX crisis sets the industry back a few years, agreed Binance CEO.

Changpeng Zhao intends to ensure more transparency and scrutiny in the crypto industry. The chief blames himself for not tweeting about selling FTT tokens earlier and letting FTX get too big.

The Singaporean authorities’ investigation comes as Changpeng Zhao is emerging as the new king of cryptocurrencies after the downfall of Bankman.

The Singapore market authority announced that it is conducting an investigation into Binance as well. The regulator said it received several complaints about Binance between January and August 2021. There were also announcements in multiple jurisdictions of unlicensed solicitation of customers by Binance during that period. Binance is suspected of violating rules related to payment services.

In the first court hearing for the FTX bankruptcy case on Tuesday, a lawyer for the firm gave a verdict of FTX and its leadership, saying the company was run as the “personal fiefdom” of Bankman-Fried.

“Binance saw a slight increase in withdrawals after the FTX saga,” said Zhao, but he added this was in line with typical activity during times of declines in the crypto market.

Whenever prices drop, we see an uptick in withdrawals. That’s quite normal. Whenever one big player goes down, especially a trading platform, there are many people and institutions with money on the platform. We have seen Genesis halting withdrawals, probably there will be one or two more. However, the cascading effect will become smaller. Overall, the industry is fine.