The world’s largest cryptocurrency exchange, Binance, is on the verge of making important decisions as pressure from US regulatory agencies intensifies. Binance CEO Changpeng Zhao has signaled that he can withdraw from the deal with the bankrupt cryptocurrency company Voyager. According to the latest developments, CZ hinted that this is behind the backdrop of increased regulatory pressure and scrutiny.
Binance may withdraw from Voyager deal!
Changpeng Zhao (CZ), CEO of cryptocurrency exchange Binance, shared on Twitter on Friday. Accordingly, the company could withdraw from the deal made through its US subsidiary to acquire bankrupt crypto lender Voyager Digital. Accordingly, Binance is considering terminating the said agreement. However, there is no official confirmation from the company yet. However, CZ’s post reveals that the fact that Binance may pull out of the buyout deal is only a possibility.
cryptocoin.com Recently, the world’s largest crypto exchange has found itself in the midst of regulatory scrutiny and pressure in the US. It has even led to speculation that due to the seriousness of the situation, Binance may cut ties with the US-based exchange and cease all operations in the country. However, these speculations were later denied by CZ in an official tweet.
Meanwhile, it should be noted that the proposal for the acquisition of Voyager by Binance is also the target of intense pressure from the regulatory authorities. The agreement in question was signed in December 2022. Since then, some US regulators have voiced their opposition to the transaction, which would involve Voyager selling its assets, once estimated to be worth $1 billion, to Binance.US.
Binance Holdings Ltd, the parent company of the Binance empire. unable to do business in the country and therefore CZ established Binance.US as a separate entity in 2019. According to information in a file created by the regulators, CZ still dominates both companies. Replying to a tweet highlighting the ongoing Binance-Voyager deal, CZ said, “Maybe we should withdraw?” He retweeted the post.
Maybe we should pull out? https://t.co/7t89kfB5Qr
— CZ 🔶 Binance (@cz_binance) March 3, 2023
The giant crypto exchange is under the grip of regulators!
Meanwhile, interestingly, Changpeng Zhao’s share comes just one day after a letter from three prominent US Senators representing both the Democratic and Republican Party to Binance’s CEO. In the letter, it was requested to provide information about the measures they have taken to ensure compliance with the legislation, as well as a comprehensive accounting of their financial situation.
Senators did not hold back, claiming that the crypto giant is facilitating illegal operations inside the country. In this context, they did not hesitate to describe Binance as a ‘slot for illegal activity’, likening it to FTX. In response to the latest Binance news, the price of BNB witnessed a 3.54% drop in the last 24 hours. At press time, BNB was trading at $289.2 with a market cap of $45.6 billion.
