The recent FTX scam has caused a wild stir in the crypto industry. While firms like Genesis and a few others are grappling to sustain in the market, Changpeng Zhao, CEO, of Binance confirms a bid for Voyager Digital – a centralized crypto lender. The firm filed for bankruptcy in September this year. Binance confirmed. The largest crypto exchange firmed the former in an interview with Bloomberg on Thursday.
“Binance.US will make another bid for Voyager now, given FTX is no longer able to follow through on that commitment,” Zhao commented.
When Voyager Digital found itself in the crosshairs, FTX which is now defunct had plans to acquire the firm. At the same time, Binance had stepped back from pursuing the deal citing U.S. government security concerns.
Several comments have been thrown at Zhao for being born in China and Binance has been called a chinese exchange for the same reason. To which Zhao responded in a blog post. “I am a Canadian citizen, period’’, he said.
Let me tell you a little something.
A Chinese company will never dare to say they are not a Chinese company publicly.
Hope that puts this to rest. https://t.co/GtcElzPw9T
— CZ 🔶 Binance (@cz_binance) November 24, 2022
Earlier this week, Binance refused to extend fresh capital to Genesis – a lending platform that has found itself in troubled waters owing to the FTX collapse.
Flashback of the first Bid pursued by FTX and Binance.US
In September, Voyager Digital was set to auction for which both FTX and Binance – the top leading exchanges were in line to acquire. However, with FTX and Alameda Research falling into bankruptcy soup, Binance has now come forward with another chance to acquire the platform.
Zoom to the current status on Binance
Binance now aims to raise $1 billion to aid struggling crypto platforms like Voyager by acquiring their assets, CZ added. Chang also tweeted that he took too long to comment on the FTX debacle. Changpeng also mentioned that they had planned to liquidate the stack of FTT tokens.
Yesterday, #Binance allocated ANOTHER $1 billion to the industry recover initiative. All in BUSD.
— CZ 🔶 Binance (@cz_binance) November 25, 2022
“I think, as an industry, we let FTX get too big before we started to question some of those things.” – CZ noted.
Additional Read: Proof of Reserves CoinDCX
Voyager Digital then V/s Now
Digital Voyager which filed for bankruptcy in September 2022 was supposed to be acquired by FTX exchange. FTX bought the assets after a series of bidding rounds. Its bid was worth roughly $1.42bn and was set at a fair market value of the crypto lender’s assets at $111m.
The crypto lender stated that “Voyager did not transfer any assets to FTX US in connection with the previously proposed transaction.” FTX US so far had sent across $5m in “good faith” as part of the auction process held in escrow.
The native token of Voyager Digital VGX rose by 24.4% compared to the previous day to $0.44 according to data provided by Coinmarketcap.
FTX deliberately spread rumors that Binance may fall in a legal spat if it acquires Voyager Digital owing to U.S securities concerns. Rumor has it that many extremists have called Zhao and Binance a Chinese firm knowing how Joe Biden and Donald Trump would react to a pseudo claim of Zhao being a Chinese citizen.
“There were never any concerns about Binance.US participating in the bid.” Zhao said that Binance has acquired multiple companies in America without any issues.
Additional Read: Genesis Bankruptcy rumor drives Bitcoin Price below $16,000
Source: CoinDesk
Related posts
Bitcoin is Not a Threat to the US Dollar: Goldman Sachs; BlackRock Buys $600M in BTC
Goldman Sachs focuses on Bitcoin’s tech to reduce financial friction.
What is JioCoin? Reliance Jio’s Bold Move into Cryptos
JioCoin integrates with Polygon for scalable blockchain solutions.