Binance creates US$1b fund to support Web3 firms in wake of FTX collapse

Leading crypto exchange Binance has set up a US$1 billion recovery fund to shore up companies affected by the collapse of its former main rival FTX.

At least seven companies, including Hong Kong’s Animoca Brands, have committed to contribute to the fund, which aims to restore confidence in the Web3 industry.

Binance has earmarked US$1 billion for the fund and the amount could increase to US$2 billion if such need arises, the exchange platform said on November 25.

Beside Animoca Brands, other companies that have pledged to contribute are Jump Crypto, Polygon Ventures, Aptos Labs, GSR, Kronos, and Brooker Group, involving a total of approximately US$50 million. 

The fund will yield support to struggling Web3 companies in the wake of the FTX’s fallout, through tokens, fiat, equity, convertible bonds, debt, and credit lines. About 150 companies have already applied for support from the fund. 

In early November, Binance once considered a deal to rescue FTX but abandoned it later after due diligence. Shortly afterwards, FTX filed for bankruptcy in the U.S.