Binance to Replace FTX in Acquiring Voyager Digital

The Chief Executive Officer (CEO) of Binance, Changpeng 'CZ' Zhao, disclosed on Thursday that he has plans to acquire another crypto lender Voyager Digital. Following the announcement, Voyagers token price VGX skyrocketed over 24% instantaneously. Voyager is one of the earliest crypto firms to declare bankruptcy in July 2021.

Many people still doubt the viability of Voyager Digital's business. Before FTX injected $500 million to support the company after Three Arrows Capital (3AC) defaulted on its $600 million loan, FTX US won the bid to purchase the company's assets.

In September, FTX.US won the auction to purchase the assets of Canada's digital assets broker with a bid of just over $1.42 billion. The company's primary liquidity crisis was only slightly relieved by the cash injection from FTX. But the implosion of FTX and its associated entities has left the bankrupt crypto lender without a buyer.

WikiFX would like to make sure that our users and fellow traders are always on top of the ins-and-outs of the market. On the free WikiFX mobile app homepage, users can scroll down to find a column for specially curated articles by our editors that cover topics such as in-depth broker review, fundamental analysis, economic news, and exposure of scam cases. This is where you could catch invaluable hints and insights that could make or break your personal trading.

If Binance is successful in its renewed plan to buy the firm, FTX US will lose out in more ways than one. If FTX US had won the bid to acquire the firm, it would have preserved its initial investments in the company. Voyager Digital's creditors would have had until November 29 to accept or reject the restructuring plan if it weren't for the FTX Group's bankruptcy. Additionally, a hearing to possibly confirm the plan was set for December 8.

Voyager Digital had a thriving crypto lending offering. Even though it hit a wall with the collapse of 3AC earlier this year, the company could still be a useful lending platform with the right organisational changes. In addition to Binance.US, CrossTower is another prospective investor interested in placing a bid for Voyager Digital.

A previous purchase offer from Binance was turned down due to alleged worries that the acquisition might endanger the US government's national security. According to CZ, the FTX exchange may have spread rumours to bar rival bidders from participating.

In an interview with Bloomberg TV, CZ confirmed that the public had an incorrect impression that its participation in the bid would raise issues with national security. He claimed that FTX used the scare about national security as an unhealthy tactic to exclude it from the bidding process.

The CEO of Binance confirmed that there are no national security concerns as claimed because the company's American subsidiary has easily acquired numerous subsidiaries in the country. By drawing on his Chinese heritage, CZ has had to fight off the false belief that the trading platform has any connections to the Chinese government.

The rumour that Binance has close ties to China is not new and has recently gained traction. In order to correct the misunderstanding, the business and CZ himself have, in fact, had to speak out publicly on many occasions. Despite having a Chinese appearance, CZ claimed in a recent interview with Bloomberg that he had been a Canadian citizen for the past 30 years. This demonstrates how much closer he is to North America than any other Asian nation.

On the other hand, CrossTower president Kristin Boggiano said that Voyager's modest $3 million FTX investment would not play a factor in a potential sale for the lending platform. However, the company has yet to provide any information about its most recent bid for the company. In light of the FTX collapse, CrossTower's president declared that they would place a greater emphasis on businesses that are highly transparent and compliance-focused.