CORRECTION (Nov. 28, 12:15 UTC): Corrects throughout that the funding was for Binance’s customer support fund. CEO Changpeng Zhao had tweeted on Nov. 25 that the funding was for the firm’s industry recovery initiative.
Crypto exchange Binance allocated another $1 billion to its Secure Asset Fund for Users (SAFU) just days after topping it up to $1 billion after its value fell as the crypto market declined. The emergency insurance pot was established in 2018 to protect users’ funds.
The expansion was affirmed in an email to CoinDesk after Binance CEO Changpeng “CZ” Zhao on Friday tweeted the money had been allocated to the exchange’s industry recovery initiative, which aims to consider investment opportunities resulting from the collapse of firms such as Three Arrows Capital, Celsius and FTX.
Binance also said Aptos Labs and Jump Crypto, along with other prominent crypto companies joined the industry initiative and will contribute $50 million to the fund.
The recovery fund would be used to buy distressed crypto assets and support the industry. The crypto market has seen a massive decline since the start of the year, leading to several crypto firms going out of business.
The crypto market continues to be under pressure, with bitcoin (BTC) trading 1.6% lower during the day, hovering at around $16,400 at the time of writing.
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