The largest cryptocurrency exchange platform, Binance, whose CEO is Changpeng “CZ” Zhao, previously declared that it would convert the remaining funds from the Industry Recovery Initiative into Bitcoin, BNB, and Ethereum. The CEO explained the announcement’s timing by pointing to the failure of cryptocurrency-friendly financial institutions and recent stablecoin depeg events.
The aforementioned announcement was made during the bank and stablecoin crises. CZ tweeted that their decision to shift the remaining $1 billion in the Industry Recovery Initiative fund from BUSD to native cryptocurrencies like BTC, BNB, and ETH was made in light of the changes in stablecoins and banks. According to reports, some fund movements will take place on-chain.
Binance Converts $1B Industry Recovery Fund
According to Etherscan data, the wallet in question, which was purportedly connected to Binance’s Industry Recovery Program, contained 985,088,975.25 BUSD, which was valued at $979,867,018.5. The depeg of several stablecoins amid the failure of crypto-friendly institutions is thought to be the cause of the observed disparity in value.
According to reports, the company supposedly started the aforementioned BUSD conversion through Uniswap on Monday morning. The aforementioned claim reflects the specifics of the transaction. Whale Alert also noted the transfer of 985,088,975 BUSD from the Binance Recovery Fund to the company itself.
The Aftermath of the Recent Collapses
The New York state regulators have attempted to shut down Signature Bank in the aftermath of the alleged collapses of Silvergate Bank and Silicon Valley Bank. This recent condition has forced CZ to allege that the said activities may be seen as an “organized campaign to shut down crypto-friendly banks”.
It is irrelevant that the company decided to end its Binance USD Auto-Conversion policy last Saturday before this news broke. It should be recalled that the aforementioned policy was just adopted in the fourth quarter of 2022. The CEO of Binance, “CZ,” went on to say that Binance will now support a number of stablecoins, such as USDT, USDP, and TUSD. Because of this, users have until March 18 at 6:00 AM UTC to exchange their BUSD for other stablecoins.