Binance’s $1 Billion Acquisition Faces Opposition from US Government

04/01/2023 13:22 • Blockchain Buzz • 131 views

According to reports, a New York judge said on Friday that the United States government had a “substantial case case case” in opposing Binance. US’s $1 billion acquisition of the assets of bankrupt cryptocurrency lending agency Voyager. District Judge Jennifer Rearden shelved the $1 billion deal, but said she would work to quickly resolve the dispute, considering that the delay could result in property losses of up to $10 million per month. （Coindesk）

Judge: The U.S. government has filed cases against the Voyager Bince. US transaction; Substantive; Reason for

The acquisition deal of Binance, worth $1 billion, to acquire the assets of Voyager – a bankrupt cryptocurrency lending agency, has hit a roadblock. A New York judge ruled that the US government has a “substantial case” in opposing the deal, which led to its shelving until the dispute is resolved. District Judge Jennifer Rearden recognized that any further delay could lead to property losses of up to $10 million per month.

Background on Binance and Voyager

Binance, a cryptocurrency exchange, was founded in China in 2017. The company then relocated to Malta in response to regulatory changes, before settling on the Cayman Islands. The exchange primarily deals with Bitcoin and other cryptocurrencies and currently has over 25 million users globally.
Voyager, on the other hand, is a crypto trading app that allows users to buy and sell different cryptocurrencies. The company filed for bankruptcy in May 2022 citing a shortage of funds, which led to Binance’s interest in acquiring its assets.

Reason for Opposition

The US government’s opposition to the deal stems from the belief that Binance’s acquisition of Voyager’s assets will give the exchange company an unfair advantage and too much control in the cryptocurrency trading market. The government is alleging that Binance has already violated anti-money laundering regulations in the past, and there is potential for a repeat with Voyager’s acquisition.
Furthermore, the US regulators are concerned about Binance’s ties to China and the lack of transparency surrounding the operations of the company. The government believes that allowing the acquisition to proceed could cause significant risk to the country’s national security.

Implications

If the acquisition deal goes through, Binance will gain access to Voyager’s digital asset trading platform and nearly $32 million in customer deposits. It will help Binance to expand its market share in the cryptocurrency exchange industry further. However, if the US government’s opposition is upheld, Binance may have to deal with significant setbacks in expanding its market share in the country.

Conclusion

Binance’s planned acquisition of Voyager is facing opposition from the US government, which believes that the deal could pose a significant risk to national security. The opposition has led to delays in the deal’s conclusion, which could result in significant property losses for all parties involved. However, Binance has yet to release an official statement addressing the situation, and it remains to be seen what the outcome of this case will be.

FAQs

Q1. What is Binance, and how does it operate?
A. Binance is a cryptocurrency exchange that deals with Bitcoin and other cryptocurrencies. It has over 25 million users globally and operates primarily from the Cayman Islands.
Q2. What is Voyager, and why did it file for bankruptcy?
A. Voyager is a crypto trading app that allows users to buy and sell cryptocurrencies. The company filed for bankruptcy in May 2022 citing a shortage of funds.
Q3. What is the US government’s primary concern with Binance’s acquisition of Voyager’s assets?
A. The US government’s primary concern is that Binance’s acquisition of Voyager’s assets will give the exchange company an unfair advantage in the market and could pose a risk to national security. The government alleges that Binance has violated anti-money laundering regulations in the past.

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