After being shut out due to national security concerns, Binance.US is ready to bid for bankrupt Voyager Digital. FTX had come as a white knight for the lending platform after winning against rivals Wave Financial.
But now with the Sam Bankman-Fried crypto exchange itself having filed for bankruptcy, Voyager Digital has to reopen the bidding process for the company. The firm is in discussions with alternative bidders.
The managing partner at 507 Capital, Thomas Braziel believes matters are complicated as Voyager Digital is going to have to claim against the FTX estate for breach of contract. He said the problem is that the claim is only going to be against FTX US. Braziel expressed concerns about the collateral being held in trust. He said any cause of action could end up being behind all the customers. The expert outlined that the problem will be if customers are not going to be made whole.
CZ had earlier this week said Binance is setting up an industry recovery fund to help rebuild the industry. Patrick Hillmann, Binance’s chief communications officer, said Binance is not looking to be the white knight of crypto. He highlighted that there are no Luke Skywalkers or Darth Vaders in business. Binance has the most to lose because as a market leader it looks around to see how it can help enhance the industry through a black swan event.
