2023-04-26 08:19:20
The cryptocurrency giant has given up on buying the American crypto-lender Voyager Digital, which has been bankrupt since July.
The crypto ecosystem is definitely losing a strategic player. Binance has given up on a file to take over the assets of the American crypto-lender Voyager Digital, which has been in bankruptcy since last summer. As a reminder, the crypto giant had proposed a $ 1 billion offer to take over certain assets of Voyager Digital, under Chapter 11 of the American bankruptcy law. But it was impossible to complete the file without the green light from the American stock market authorities and it even required the blank check of the American committee for foreign investments. His decision has therefore been made: Binance will not save Voyager Digital.
Founded in 20217, Voyager Digital is the crypto lending platform that has been struck by lightning twice in a few months, between thecollapse of the Terra Luna ecosystem and the midair explosion of crypto investment fund Three Arrow Capital. At the time of its bankruptcy last July, Voyager Digital had regarding $1.3 billion in cryptocurrencies as well as $350 million in cash held at the Metropolitan Commercial Bank. According to his bankruptcy filing, its assets were in the $1 billion to $10 billion range, as were its debts. The company had more than 100,000 creditors.
“Disappointing” decision
The company finds itself in a hard-winded liquidation position. This is a “disappointing” decision, reacted Voyager Digital, forced to return its remaining assets directly to customers according to the procedure in force and in the absence of a buyer.
“As per plan, we will now move quickly to return value to customers through direct distributions. We will provide more information on next steps and actions customers should take in the coming days,” the company said. .
It is also a new blow for Binance, which is unable to find a place for itself in an American market where its ambitions are being rejected by the American regulator. As a reminder, at the end of March, the Commodity Futures and Trading Commission (CFTC), an American financial markets regulator, filed complaint once morest the cryptocurrency giant, citing “numerous violations” of the Commodity Exchange Act (CEA) and CFTC regulations. The body considers that Binance boss Changpeng Zao (CZ) “operates an illegal digital asset derivatives exchange” in the United States.
This is not Binance’s first bid abandonment. Last November, when FTX was in the midst of a storm, the company announced that it wanted to buy out its main competitor. But following taking a look at its finances, Binance finally backtracked, noting the deplorable state of its financial management and holes in its accounting.
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