Bloomberg: Binance's $1 billion "Industry Recovery Plan" has deployed less than $30 million

ChainCatcher news, according to Bloomberg, after the collapse of FTX last November, Binance launched the Web3 Industry Recovery Initiative (IRI) and publicly disclosed a wallet address containing 1 billion BUSD. However, wallet analysis to date shows that less than $30 million has been deployed since the project's launch. Of the nine designated participants, only one has committed all of its promised funds. As part of the program, the only investment publicly disclosed by Binance is the announcement in February to purchase a majority stake in the South Korean cryptocurrency exchange GOPAX for $15 million. Binance stated that it is awaiting final approval from local regulators to complete the transaction.

A Binance spokesperson stated that the IRI has funded 14 projects but declined to disclose the names of these projects or the specific amounts of funding provided, and that the IRI is still accepting applications. A source familiar with the matter indicated that cryptocurrency market maker GSR evaluated 60 applications received through the IRI, but none aligned with its strategy. It was previously reported in March that approximately 985 million BUSD was transferred from Binance's industry recovery fund to Binance.

Meanwhile, the crypto asset industry continues to face a cash shortage, and the company is laying off employees to stay afloat. PitchBook data shows that the funds raised in September amounted to $508 million, the lowest level since November 2020.