Binance CEO Contemplates Voyager Deal Exit Amid Escalating Regulatory Pressure

Binance News

Binance News: According to a tweet published on Friday by the Binance CEO, Changpeng “CZ” Zhao, the company is considering sunsetting a deal that was agreed upon by its U.S. subsidiary to purchase the defunct crypto lender Voyager Digital. Although there have been no official confirmations from the firm yet, CZ’s tweet comes as a mere possibility of the fact that Binance could pull itself out from the buyout deal.

Binance Might Drop Voyager Deal

In recent times, the world’s largest crypto exchange has found itself shrowded with regulatory scrutiny and crackdowns in the United States. Due to the severity of the situation, there was even a rumor that Binance could cut ties with its U.S.-based exchange and cease all operations in the country. However, the report was later shunned by the Binance CEO in a subsequent official tweet.

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The proposed acquisition of Voyager by Binance has also been the target of intense pressure from regulatory authorities. Since the agreement was signed in December 2022, a number of U.S. regulators have voiced their opposition to the proposed transaction, which would involve Voyager selling its assets to Binance.US in a transaction — that was once estimated to be worth $1 billion. Binance Holdings Ltd. which is the parent company of the Binance empire, cannot conduct business in the country and therefore CZ established Binance.US as a separate entity in 2019. According to the information provided in a filing made by regulators, Zhao is still the dominant owner of both companies.

While responding to a tweet highlighting the ongoing Binance-Voyager deal, CZ retweeted the post saying “Maybe we should pull out?”, implying that there is chance of Binance dissolving the buyout.

Binance’s Growing Legal Troubles

Zhao’s tweet comes just a day after a letter was issued to the Binance CEO from three prominent U.S. Senators representing both the Democratic and the Republican Party. The letter asked for a comprehensive accounting of their financial situation as well as the measures they have taken to ensure regulatory compliance. The senators didn’t mince their words when they alleged the crypto giant was facilitating illicit operations within the country, referring to it as a “hotbed of illegal activity“.

In response to the recent Binance news, BNB’s price witnessed a drop of 3% in the past 24 hours and currently trades at $289.14 with a market cap of $45 billion.

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The post Binance CEO Contemplates Voyager Deal Exit Amid Escalating Regulatory Pressure appeared first on CoinGape.

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Pratik Bhuyan