Binance CEO Changpeng Zhao pledged to launch a fund that will commit $1 billion to invest in distressed crypto assets.
“If that’s not enough, we can allocate more,” Zhao said.
In a Bloomberg interview on Thursday, the crypto star expanded on his previously announced plans to back crypto projects in need of liquidity in the wake of FTX’s collapse.
“We are going with a loose approach where different industry players will contribute as they wish,” he added.
Zhao’s efforts come as the crypto industry swallows FTX’s downfall after it failed to plug a shortfall of $8 billion in a severe liquidity crunch. FTX filed for Chapter 11 bankruptcy protection along with more than 130 other affiliated entities that made up the Bahamas-based FTX Group. At the same time, its founder Sam Bankman-Fried stepped down as the CEO.
Its implosion sparked fears of contagion risks, especially after crypto brokerage Genesis warned it might have to file for bankruptcy if it doesn’t receive funding for its lending unit. “There will be a pain whenever one player goes down,” Zhao said.