Binance CEO Says Exchange ‘Pulled Back’ Bids on Bankrupt US Firms

Binance CEO Says Exchange ‘Pulled Back’ Bids on Bankrupt US Firms

Major crypto exchange Binance is holding off on any plans to invest in embattled crypto firms in the United States.

In a Feb. 18 tweet, Binance CEO Changpeng Zhao disclosed that the crypto exchange has pulled back on potentially investing in some bankrupt U.S.-based companies, opting to “seek permission first.”

Zhao also responded to blockchain investor Anndy Lian’s advice to “stay clear” of these firms, saying he agreed with the notion.

Binance’s U.S.-based subsidiary Binance US was in talks to acquire bankrupt crypto lender Voyager Digital’s crypto assets. In January, CoinDesk reported that bankruptcy judge Michael Wiles approved initial disclosure statements of the proposed plan.

The approval came after the U.S. Securities and Exchange Commission filed a limited objection to Binance US’s $1.022 billion offer for Voyager’s assets, questioning how the exchange could afford a purchase of this magnitude.

Binance was also allegedly one of the bidders for bankrupt crypto lender Celsius Network’s assets, according to documents leaked by Celsius creditor Tiffany Fong last month. Investment firm NovaWulf was ultimately selected to acquire Celsius’ assets by the firm’s debtors, as per a report last week.

Regulators have turned up the heat on entities like Binance in recent weeks. The crypto exchange’s dollar-pegged stablecoin, issued by Paxos, became the subject of scrutiny after the New York Department of Financial Services ordered the firm to stop minting BUSD. The Wall Street Journal reported that the SEC also hit Paxos with a lawsuit over its BUSD offering.

In light of recent events, many believe that Binance could be turning its attention away from its U.S. business partners entirely. A Feb. 18 report from Bloombergciting sources familiar with the matter, stated that the crypto exchange planned to end relationships with U.S.-based intermediaries, and delist all US-based cryptocurrencies. Zhao labelled these claims as “false” in a tweet shortly after, saying “blockchain has no borders.”

See also  Commentaries by Anndy Lian “New Global Standards Come with the Marriage of Binance & Coinmarketcap"

 

Source: https://unchainedpodcast.com/binance-ceo-says-exchange-pulled-back-bids-on-bankrupt-us-firms/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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