CrossTower to consider creating an industry-recovery fund

The cryptocurrency exchange CrossTower is targeting a win in the auction of assets bankrupt creditor Voyager Digital, and, with partners, is examining the possibility of creating a structure to buy promising firms. — Bloomberg.

\”We are interested in the client base, a strong balance sheet, and a history of organic growth,\” — CEO Kapil Rathi.

In October Voyager reached a preliminary agreement with FTX US. The deal envisaged returning 72% of clients’ assets of the crypto broker to their holders.

In September, the firm founded by Sam Bankman-Fried won the auction for the sale of assets, bidding around $1.4 billion.

After FTX Group filed for bankruptcy on November 11, Voyager Digital said it would restart the auction and was ready to discuss terms with potential buyers. Interested parties included Wave Financial and CrossTower. Binance.US also confirmed participation.

CrossTower declined to provide details about its bid and financing partners, citing process-related legal requirements.

In November Binance, Bitget and OKX independently launched \”recovery funds\” to support companies affected by the FTX collapse to avoid a cascading effect.

According to CrossTower chief Christine Bogdzano, the platform does not plan to participate in Binance’s initiative.

She also said there was \”minimal damage\” from the FTX collapse.

\”There is now an opportunity to offer a platform that is compliant with requirements, and to deliver the transparency and trust people had hoped for,\” Bogdzano said.

According to CryptoCompare, CrossTower ranks 91st by daily trading volume of digital assets ($125,600).

As noted, to verify digital-asset reserves, many exchanges have begun publishing Proof-of-Reserves results. The initiative was proposed by Binance, with Crypto.com, OKX, Gate.io and Huobi among its supporters.

Earlier, Binance CEO Changpeng Zhao also compiled a list of the most important, in his view, requirements for centralized platforms.

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