Highlight of Binance
- Also under investigation for money laundering is Binance.
- Binance saw a significant increase in withdrawals after the FTX meltdown.
- The US claimed that its distinct American exchange is completely independent.
The Securities and Exchange Commission (SEC) of the United States has objected to Binance in a limited manner. According to a bankruptcy court filing on Wednesday, the US wants to buy the insolvent bitcoin lender Voyager Digital for $1 billion (approximately Rs. 8,250 crore). The regulator drew attention to the disclosure statement from Binance.US that omitted crucial information.
According to the petition, it claimed that the acquisition agreement lacked information about the ability of the cryptocurrency exchange to finalise the deal and sought for more specifics about the nature of the company’s business operations going forward.
lawyers for Binance and Voyager. Requests for comment from US did not immediately receive a response.
The deal could be delayed or blocked, the US Committee on Foreign Investment in the United States (CFIUS) warned last month.
US prosecutors have been looking into Binance as a potential money laundering target. According to the Palo Alto, California-based company Binance.US, its own American exchange is “completely autonomous” of the main Binance platform.
After the FTX cryptocurrency exchange failed due to a lack of liquidity in the final days of December, Binance saw a spike in withdrawals. In an effort to calm nervous cryptocurrency investors, CEO Changpeng Zhao described this behaviour at the time as “typical market behaviour.”
Over $2 trillion was lost by the whole crypto industry between 2021 and 2022. (roughly Rs. 1,65,74,700 crore). Investor interest in the space has decreased as a result of the Russia-Ukraine conflict, the COVID-19 pandemic-related recession, frequent hacking assaults, and the failure of promising cryptocurrency startups like LUNA and FTX.
Companies like CryptoCom and Binance among others reduced their workforces in response to market stress. Companies including BlockFi, Celsius, and Voyager Digital filed for bankruptcy.