Binance CEO Changpeng Zhao (CZ) pledged $1 billion in relief funds for illiquid crypto firms. He also confirmed a bid for Voyager, dismissing rumors about regulatory concerns and suggested that these may have been spread by the now-bankrupt FTX.
The bankrupt crypto lender Voyager was left without a buyer when a $1.4 billion deal with FTX fell through. Sam Bankman-Fried’s FTX went bankrupt before the deal could be finalized.
When asked about potential regulatory concerns over the bid, he dismissed them. Binance acquired multiple companies in the US without issue, he said.
"I think the US national security concerns were rumors spread by FTX to try to push us out of the bid," said CZ, referencing an earlier bid that FTX won.
“Binance is not a Chinese company, we are not related to China at all.”
CEO Changpeng “CZ” Zhao (@cz_binance), who is considering a bid for assets of bankrupt crypto firm Voyager, said on @BloombergTV his company is mistakenly believed to be Chinese “because I look Chinese” pic.twitter.com/Wqos9XTeW5
— Bloomberg Crypto (@crypto) November 24, 2022
"We are not related to China at all. I have to repeat this many times just because I look Chinese, but I've been Canadian for 30 years," CZ said.
Binance $1 Relief Fund
The Voyager bid was just a small part of Binance’s effort to reduce contagion in the crypto industry. In addition to bidding for Voyager, CZ also pledged at least $1 billion for a crypto industry relief fund.
“We are going with a loose approach where different industry players will contribute as they wish,” CZ said, adding that he will give out more details soon.
The relief fund will be used to provide liquidity and capital for the businesses impacted by the FTX collapse.
Earlier, CZ wrote that the fund was intended to reduce contagion from the FTX collapse. He also specified that the fund would “help projects who are otherwise strong, but in a liquidity crisis.”
On the Flipside
- Binance could be facing anti-trust scrutiny if it continues to buy up struggling crypto companies and win more market share.
Why You Should Care
The crypto industry is still at risk of contagion from the FTX collapse, and a relief fund could help boost investor confidence.
Learn about Binance’s further expansion plans:
Binance Considers Buying Banks to Bridge the Gap Between Crypto and Traditional Finance
Read more about the Voyager collapse:
Binance to Relaunch Bid for Bankrupt Lender Voyager Following FTX Collapse