Binance Pulls Out Investments In US Crypto Companies; What About Voyager?

Binance US News: Amid much talk about Binance‘s troubles from regulators in the US, the FUD around BUSD continues as stablecoin volumes on crypto exchanges continue to drop. This comes after the U.S. Securities and Exchange Commission (SEC) recently placed restrictions against the issuance of Binance USD (BUSD). The stablecoin outflow from exchanges is also coinciding with the rise in inflow of Bitcoin (BTC). Meanwhile, Binance is taking some major decisions amid unfavorable environment in the US.

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Several US regulatory bodies as well the Justice Department have already conducted investigations into Binance’s operations. In a recent proposal the SEC, a new rule that puts additional scrutiny on crypto custody services by exchanges like Coinbase and Binance is set to be introduced.

Pull Back From The US?

In this context, rumors about Binance’s decision to delist all US based cryptocurrencies surfaced, which were quickly denied by CEO CZ. He said such news about delisting was false and that “blockchain has no borders.” However, he clarified that his company has for time being pulled out some investments from potential deals in bankrupt companies. This brings to the question whether the investment withdrawal is impacting the $1.02 billion Voyager deal. CZ is yet to clarify with an update on the Voyager deal status.

“We pulled back on some potential investments, or bids on bankrupt companies in the US for now.”

The Voyager deal is currently pending creditors approval and a final court hearing. The United States Bankruptcy Court had recently approved the deal, which if moves forward, would help Voyager customers recover 51% of the assets. The asset purchase agreement involves $20 million in cash and transfer of Voyager customers to Binance US. The beleaguered crypto lender filed for bankruptcy protection in July 2022, owing to its exposure to Three Arrows Capital, a bankrupt crypto hedge fund.

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Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @BitcoinReddy and reach out to him at [email protected]