Binance keeps making headlines since the collapse of FTX – Binance USA, which legally is not part of Binance (below the surface the situation is much grayer), announced that it will acquire the assets of crypto-lending company Voyager in exchange for $1.02 billion. Voyager declared bankruptcy early last summer, after being significantly affected by the collapse of Terra Luna and the 3AC Foundation. Until a few weeks ago, the leading candidate for the purchase of Voyager’s assets was one of the largest companies in the field – FTX, which also collapsed and announced bankruptcy last month.
The name is indeed misleading, but Binance USA is not part of the Binance company that we all know. Binance is a private company located abroad, it is not supervised and does not have a license to operate in the USA. In order to penetrate the American market in a certain way, Binance USA was established , which operates according to a certain approval and supervision in the country. Binance USA won the tender to purchase Voyager’s assets, but will have to wait until the company receives court approval in about three weeks to sell its assets, as it is in bankruptcy proceedings. As with Binance, also with FTX who was intended to purchase its assets of Voyager was the American company and not the global company. After the announcements that the company would make the purchase, Voyager’s currency – VGX, soared by about 40%, its market value is about 100 million dollars, A year ago it almost reached a billion dollars.
The purchase will indeed be positive for the “American version” of Binance, as it is able to increase its market share in the US, but this does not mean anything positive about the situation of Binance itself, the opposite may be true. A few days ago, the possibility of customers was terminated Binance USA withdraw the stablecoin USDT, the currency with the third largest market capitalization in the crypto world – 66 billion dollars. The withdrawal freeze came after the company’s liquidity was unable to meet the amount of customer withdrawals. According to data from the blockchain network on which the USDT currency in question is transferred (the Ethereum network), 10 million coins were transferred to a Binance USA wallet and after a few hours the withdrawals were allowed again.
Who helped Binance USA with this problem? According to blockchain network analysis, The coins came from the wallet of none other than the original Binance. At first hearing it is not clear what the problem is, the parent company transferred money to the subsidiary to help it with a liquidity problem, the problem is that here These are two separate and different companies that are supposed to serve completely different customers. As mentioned, global Binance is not supervised and does not have permission to operate within the borders of the USA, how is it that it transfers funds to Binance USA as if it were part of it? This transfer raises big questions about whether Binance USA is indeed an independent company and separate from Binance Global, or whether it is a camouflage that has so far succeeded in bringing down even the regulators in the USA, who seem to always be behind the crooks of the crypto world.
Binance Global has already said that it has no interaction in any way with Binance USA and that the only connection is that it provides an American company with the option to use its technologies in exchange for payment. Mixing the activities of the two companies could lead to a serious problem and a hunt by the American regulators who are still in the market from what happened with FTX. Furthermore, If Binance USA didn’t have enough liquidity to meet its customers’ withdrawals of less than $10 million, how does it plan to acquire Voyager’s assets of more than $1 billion?
It seems that the two companies are now trying to create as positive an image as possible regarding the situation of Binance, but as we have become accustomed to seeing in the crypto world – when working mainly on the image while suspicions are just rising, something is probably not just stinking. The CEO of Binance continues to be interviewed by the media and to post sympathetic tweets for his company, but meanwhile Binance’s stable currency – BUSD, which makes up most of its assets (according to Binance), Lost about 20% of its market value in about a week.
At the end of last week, the accounting office, which performed a certain audit for Binance, stopped its services to crypto companies and the reports it prepared for those companies (the largest of which is, of course, Binance) were removed from its website. The firm performed a “proof of reserves” for the company, which wanted to prove its strength to its users after the collapse of FTX. Even with the release of the reports prepared by the office for Binance, he said that he did not vouch for them or the state of the company. All the events together of course raise many concerns because the company is facing an abyss and we saw it on the users, when the day before the report about the law firm came the withdrawals from the Binance exchange reached billions of dollars.
Things continue to stink around Binance and probably after FTX you should treat the whole situation very carefully. The bankruptcy processes of all the major crypto companies that have collapsed are expected to be long and at their tedious end the innocent customers will probably still be the losers. The regulators abroad, and specifically in the US, need to adapt to the new crypto world or we will soon see the biggest collapse of the crypto world, a collapse that will lead many investors to lose their money (maybe for good).
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