Binance Converts $1B Fund into Cryptocurrencies - 04 April 2023
Binance, the world’s largest cryptocurrency exchange, announced that it will convert a fund containing almost $1 billion in reserves into various digital currencies, including Bitcoin, Ethereum, and its native token BNB. The move caused prices of these cryptocurrencies to rise, but concerns remain over increased U.S. scrutiny of Binance’s operations. The fund was initially earmarked to support troubled but viable crypto enterprises affected by the collapse of FTX in November, which Binance triggered by pulling the plug. However, Binance has not closed any significant support deals since the beginning of the year. The recent failures of three major institutions that facilitated money flows between fiat currency and cryptocurrencies – Silicon Valley Bank, Signature Bank, and Silvergate Capital – caused panic in crypto circles, triggering the selling of tokens deemed at risk. The collapse of these institutions made it harder for Binance to operate in the U.S., where regulatory scrut...