Binance Speaks About Xenophobia During The Voyager Crypto Auction

Binance Bitcoin

✍️ 20 September, 2022 - 17:36 👤 Editor: Jakub Motyka

A storm is brewing in Voyager crypto auction takeover over Binance's Xenophobia claims. The exchange faults the US regulators for unfair treatment. Although it remains unclear who won the bid, FTX seems to have the upper hand.

If the deal sails through, FTX would be the new acquirer of Voyager Digital. The latter was a crypto lending firm that went bankrupt this year. A bankruptcy court is currently auctioning its assets. The crypto crash registered in May triggered Voyager Digital's woes.

The sell-off pushed several crypto firms like BlockFi into debt and margin calls. Moreover, Voyager had to freeze assets to the detriment of its investors. The digital lender refused FTX s initial offer in July, terming it as a "low ball offer.'' Binance now blames the US regulators for an unlevel playing field.

Committee On Foreign Investment In The US To Decide On Voyager Crypto Auction

In a recent remark, Binance’s CCO, Patrick Hillmann, said that the firm had added funds to win the bid. The extra funds cushioned against a possible decline by the CFIUS that could have caused delays.

CFIUS approves or decline foreign acquisitions in the United States. Part of its role is to block foreign acquisition that poses security concerns to the country. The US restricts Chinese tech acquisitions, something stated in the latest executive orders. If that is the case, FTX was the lesser evil in the deal.

Lately, the crypto derivatives exchange has been buying distressed crypto firms. Its founder, Sam Bankman-Fried, recently disclosed up to $1 billion in funds for mergers and acquisitions. Additionally, the firm is eying BlockFi, another embattled crypto trading platform, that faltered during the crypto crash.

FTX Has US Origin Despite Operations Abroad  

Although FTX is based outside the US, its founder is a US citizen. The exchange has its headquarters in the Bahamas and was incorporated in Antigua. On the other hand, Binance was registered in the Cayman Islands and currently has no specific headquarters. Its founder, Changpeng Zhao, is Chinese by birth and doubles as a Canadian citizen.

The exchange moved operations outside China after a sector crackdown a year ago. Binance, which currently ranks as the largest crypto exchange, has expanded rapidly. Its latest market entry has focused mostly on the Middle East.

More crypto news:

Jared Kirui
Latest posts by Jared Kirui (see all)

Image sources:

Leave a Reply

Your email address will not be published. Required fields are marked *

Go up