Binance Crypto exchange clarifies initial $1 Billion recovery fund deposit came from own assets

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Binance Crypto exchange clarifies initial Billion recovery fund deposit came from own assets

Cryptocurrency Binance  exchange clarified that an initial $1 Billion to its cryptocurrency recovery fund came from its own assets after details of the transferring raised questions between some commentators on Twitter. 

On-chain transactions show the funds came from one of Binance’s for BUSD, ’s dollar-pegged

This wallet was recently listed in Binance’s proof of funds documentation, which shows all the cold and hot wallets the exchange owns as part of a transparency push following this month’s collapse of rival cryptocurrency exchange FTX.

Several in the cryptocurrency community had raised concerns that Binance Crypto exchange could be using customer funds as the wallet is listed as part of  its proof of funds.

are not customer funds. These are Binance Crypto exchange assets that have been set aside,” a spokesperson for the exchange stated in emailed comments. 

Binance Crypto exchange launched the recovery fund on Thursday with 1 Billion BUSD  in initial financial resources, which can be verified at the following address. A number of big names in the cryptocurrency industry have signed on to contribute including GSR, Jump Cryptocurrency and Ventures. The of other will be available in the upcoming week. 

The fund was announced last week to assist mitigate the fallout stemming from FTX’s collapse. It’s expected to last for around 6 months and has already received over 150 applications. Binance Crypto exchange has stressed that it’s not an financing fund.

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