Binance Pulls out Investments in US Crypto Companies; What about Voyager?
Binance US News: Despite much talk about Binance’s problems from regulators in the US. The FUD around BUSD continues while stablecoin volumes continue to fall on crypto exchanges. This is after the U.S. Securities and Exchange Commission placed restrictions on the issuance Binance USD (BUSD) in recent months. The rise in Bitcoin (BTC) inflows coincides with the outflow of stablecoin from exchanges. Binance is making major decisions in a difficult environment in the US.
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Binance’s operations have been investigated by several US regulatory agencies and the Justice Department. A new rule by the SEC that will further scrutinize crypto custody services offered by exchanges such as Coinbase and Binance has been proposed.
Rumours about Binance’s decision not to list all US-based cryptocurrencies were circulated in this context. CEO CZ quickly refuted them. He claimed that such news about delisting was false, and that “blockchain does not have borders.” However he clarified that his company has temporarily pulled out investments from potential deals with bankrupt companies. This raises the question of whether the withdrawal of investments is affecting the Voyager deal worth $1.02 billion. CZ has yet to provide an update on the status of the Voyager deal.
“We have stopped looking at potential investments or bids on US bankrupt companies for now.”
Is Voyager included with the pull back?
Karma Jue (@iambhutia), February 17, 2023
Voyager’s deal is currently being negotiated with creditors and subject to a final court hearing. The deal was approved by the United States Bankruptcy Court. If it moves forward, Voyager customers would be able to recover 51% of their assets. Due to its exposure to Three Arrows Capital (a bankrupt crypto hedge-fund), the beleaguered crypto lender filed bankruptcy protection in July 2022.
Also read: Is the Binance FUD real? On-Chain Data Shows Massive Bitcoin Inflow and Outflow
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