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.
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.”
- Binance could be facing anti-trust scrutiny if it continues to buy up struggling crypto companies and win more market share.
The crypto industry is still at risk of contagion from the FTX collapse, and a relief fund could help boost investor confidence.
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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss
David Marsanic is a business journalist specializing in tech and crypto. He focuses on institutional investors, venture capital and the intersection between DeFi and tradFi. He wants to help retail investors understand how major financial institutions impact the crypto space. He has been active in blockchain and crypto since 2020 and believes that there is huge potential in decentralized tech and finance.