CEO Changpeng "CZ" Zhao discussed the plan on Bloomberg Television on Thursday, and a Binance spokesperson later confirmed it in a message to The Block. "If that's not enough we can allocate more," Zhao said.
He first announced the fund last week to help mitigate fallout stemming from FTX's collapse. The fund will target projects which are otherwise strong, but facing a liquidity crisis.
Binance will follow a "loose structure" for the fund where different industry players can contribute as they wish, Zhao said. Contributors will have to send funds to a blockchain address that the public can view, he added. A detailed blog post about the fund is expected to be published soon.
The crypto industry is reeling under pressure from the collapse of FTX, the exchange formerly run by Sam Bankman-Fried. Zhao's tweets highlighting concerns about the health of FTX, a rival, and its sister firm Alameda Research earlier this month helped spur both firms' collapse. Zhao said today that he tweeted "too late" about FTX's problems.
"I think as an industry we let FTX got too big before we started questioning some of those things," Zhao said. "So I'm taking the approach where we ask questions much earlier. It does not mean any attacks on any of our industry peers. We just want to get more transparency and more scrutiny into the industry."