Voyager initially planned to sell its assets to FTX Trading, but that deal imploded when FTX went bankrupt in November amid a frenzy of customer withdrawals and fraud allegations that led to the arrest of founder Sam Bankman-Fried. Voyager filed for bankruptcy in July, months after the crash of major crypto tokens TerraUSD and Luna sent shockwaves across the digital asset industry. Binance.US, based in Palo Alto, California, has said that its separate American exchange is "fully independent" of the main Binance platform.ĬFIUS did not mention any specific security concerns raised by the Voyager acquisition in its court filing, but it said that bankruptcy courts have sometimes ruled that national security concerns can prevent a company from bidding on assets in bankruptcy. The company has been the subject of a money laundering probe by U.S. companies for national security risks, said Friday that its review "could affect the ability of the parties to complete the transactions, the timing of completion, or relevant terms."Īttorneys for Voyager and Binance.US did not immediately respond to requests for comment Friday.ĬFIUS has increasingly been used by Washington as a tool to stymie Chinese investment in the United States.īinance, is owned by Chinese-born and Singapore-based Changpeng Zhao and has no permanent headquarters. Committee on Foreign Investment in the United States (CFIUS), an interagency body that vets foreign investments into U.S. The crypto exchange's U.S.-based affiliate Binance.US intends to buy Voyager's crypto lending platform with a bid that includes $20 million in cash and crypto assets that will be used to repay Voyager's customers.īut the U.S. national security review, according to a Friday bankruptcy court filing. The collapse of crypto prices last year as well as the demise of several notable crypto companies - including FTX - exposed investors to billions of dollars in losses.Dec 30 (Reuters) - Binance's $1 billion acquisition of bankrupt crypto lender Voyager Digital could be delayed or blocked by a U.S. In August 2021, SEC chair Gary Gensler said investors weren't adequately protected in crypto markets, calling them more like the " Wild West. regulators believe cryptocurrency has no room in the traditional financial system. It allows you to convert fiat currency into Bitcoin or Ethereum with the lowest fees available. Binance gives you the ability to buy and sell cryptocurrencies with the most advanced cryptocurrency exchange platform. Industry leaders say the SEC crackdown signals that U.S. With an interface that makes it easy to trade crypto, Binance offers a tailored experience. The cryptocurrency industry has been marred by scandals and market meltdowns. customers and transfer assets to them within two weeks. The consent order obliges Binance to create new digital wallets for U.S. Also, any new coin which is launched is generally placed on the BINANCE platform. Since Binance is a world-renowned app there security features are very high and constantly evolving, Which e, in turn, makes coins in my wallets quite safe and secure. It also requires SEC oversight on any spending and prohibits the defendants from destroying records, the agency said in a statement. Pros: This software has a high amount of altcoins and block coins. federal judge Amy Berman Jackson prevents the defendants from spending corporate assets other than for ordinary business expenses. national security review, according to a Friday bankruptcy. It filed similar charges against the world's other top cryptocurrency exchange, Coinbase, nearly simultaneously.īut Binance and its CEO, Changpeng Zhao, face additional charges of diverting customer funds - concealing the fact that it was commingling billions of dollars in investor assets and sending them to a third party that Zhao also owned.Īs a result, the SEC asked that the assets of Binance's U.S. Dec 30 (Reuters) - Binances 1 billion acquisition of bankrupt crypto lender Voyager Digital could be delayed or blocked by a U.S. law by operating as an unregistered securities exchange. Under a consent order filed Saturday, the defendants in the June 5 lawsuit agreed to repatriate all assets held for the benefit of Binance's U.S. Securities and Exchange Commission and Binance have reached an agreement in court that lets the world's largest cryptocurrency exchange continue to operate in the United States as it battles SEC fraud charges.
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