Binance co-founder and Chief Executive Officer, Changpeng ‘CZ’ Zhao has confirmed that the company’s US arm Binance.US will relaunch its bid for Voyager Digital seeing the earlier winner, FTX Derivatives Exchange can no longer follow through with the commitment to acquire the crypto lender.
“Binance.US will make another bid for Voyager now, given FTX is no longer able to follow through on that commitment,” he said.
CZ confirmed this in an interview with Bloomberg TV saying the public had a wrong perception that its participation in the bid will stir national security concerns. According to him, the National Security concern scare was perpetrated by FTX as an unhealthy strategy to push it out of the bidding process.
“I think the US national security concerns were rumors spread by FTX to try and push us out of the bid,” Zhao said. “There was never any concerns about us participating in the bid.”
The Binance boss confirmed that there are no National Security concerns as alleged as the company’s American offshoot has acquired multiple subsidiaries in the United States without any hassles. Drawing on his Chinese origins, CZ has had to combat the wrong notion that the trading platform has any ties to the Chinese government.
The conspiracy that Binance has deep ties to China is not a narrative that just started spreading today. In fact, the company and CZ himself have had to come out openly on several occasions to address the misconception. In a recent interview with Bloomberg, CZ said that irrespective of the fact that he looks Chinese that he is a Canadian citizen and that he has been one for the past 30 years.
This confirms how much of a tie he has to North America than any Asian country.
Is Voyager Digital a Viable Business?
Whether Voyager Digital is a viable business remains a major question in the hearts of many. Prior to the time, FTX US won the bid to acquire the company’s assets, Alameda Research injected the sum of $500 million to help prop up the business when Three Arrows Capital (3AC) defaulted on its $600 million loan to the company.
The Alameda Research cash injection did little to alleviate the company’s core liquidity crunch and it eventually filed for bankruptcy afterward. If FTX US won the bid to acquire the firm would have preserved its initial investments in the company, but should Binance succeed in its renewed plan to buy the firm, FTX will be losing in more ways than one.
Voyager Digital had a thriving crypto lending offering and despite the fact that it hit a rock with the 3AC implosion earlier in the year, the firm remains a viable platform for lending if properly reorganized. Besides Binance.US, other interested investors looking to make a bid for Voyager Digital include CrossTower.