Hello, my fellow crypto traders!
The basic synopsis of the entire situation is that the US Department of Justice appealed to a court order approving Voyager Digital’s plan for bankruptcy, which created a new hurdle for the crypto lender’s plan to transfer its customers to Binance US and sell its assets at a 1.3 billion dollar deal.
Voyager Digital filed for bankruptcy due to the crash of major cryptocurrencies, TerraUSD and Luna.
The Southern District of New York US Attorney’s Office and the Office of the US Trustee, the Department of Justice’s bankruptcy watchdog, filed appeals against the bankruptcy court’s approval of the sale at the beginning of March.
They argued that the protections could act as a legal green light for transactions and cryptocurrency tokens that would otherwise be unregistered securities or violate US securities laws.
What is Binance US?
Binance and its American affiliate BAM Trading Services created the cryptocurrency exchange Binance US with the goal of serving the needs of Americans. Users of the platform have access to over 120 popular cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), and Cardano (ADA), and can buy, sell, trade, convert, stake, and more. This exchange offers some of the lowest trading fees in the business, and high-volume traders can benefit from discounts.
Users in Hawaii, New York, Texas, and Vermont cannot access Binance despite the fact that it supports over 120 cryptocurrencies. Despite its shortcomings, some cryptocurrency traders may find the American platform to be a respectable option due to its trading features, affordable fees, and helpful educational resources.
How is the trading experience?
Users can access the Binance US platform via an online dashboard or through the exchange’s mobile apps for iOS and Android. To purchase or sell cryptocurrency on Binance US, log into your account and choose “Buy Crypto.” To access the platform’s OTC and advanced trading portals and view market performance, choose “Trade” if trading is more your style. The sophisticated portal connects to TradeView and offers features like real-time pricing, a candlestick chart, and access to your order history. The OTC portal allows for the negotiation of trades between buyers and sellers. Note that OTC trading is only available for trades over 10,000 dollars. The Binance US trading environment would, in general, be more advantageous to more experienced traders. The features and resources are available in this exchange may be too much for beginners to handle.
Binance US Comparison to Kraken
Both Binance US and Kraken, which are based in the United States, have relatively low trading fees when compared to competing exchanges like Coinbase. Both platforms have adopted KYC protocols to assist in preventing fraud and safeguarding users. These features include multi-factor authentication and wallet whitelisting, which are industry standards for security. But there are a few noteworthy differences between the two platforms:
- As opposed to Kraken’s more than 100, Binance US’s over 120 are open for purchase, sale, and trading. Trading costs on Kraken are marginally higher than those on Binance US. Users of Kraken pay between 0% and 0.26% for each trade, compared to users of Binance US, who pay between 0% and 0.1%.
- It’s noteworthy that Binance US offers fee-free, unlimited trading of Bitcoin (BTC) with no minimum trading volumes.
- Margin or futures trading is unavailable on Binance US, whereas some users can access these options on Kraken.
- Kraken can be accessed in 48 states, whereas Binance US is only available in 46 of them.
- Contrary to Binance US, Kraken provides a wider range of customer service options. Both services offer 24/7 live chat support, and Kraken users can call customer service for help with their accounts.
If you’re an experienced trader who transacts frequently, Binance US may be worth considering, given its low fees. The platform’s educational resources might be useful to less experienced traders as well. Binance US doesn’t support margin or futures trading and has a smaller selection of cryptocurrencies than other exchanges. Hawaii, Idaho, New York, Texas, and Vermont residents will need to look elsewhere since it isn’t available in all states in the union.
Appealing and The Issues Risen of the appeal
The bankruptcy watchdog of the Department of Justice, the office of the US Trustee, and the Southern District of New York’s US Attorney’s Office filed a notice of appeal in the US Bankruptcy Court in Manhattan. However, they avoided getting too specific when describing the reasons behind their appeal. A bankruptcy judge oversaw Voyager Digital’s Chapter 11 bankruptcy proceedings. During a hearing regarding the acquisition of the cryptocurrency broker’s assets, the judge approved the restructuring plan over the objections of the Department of Justice and the US Securities and Exchange Commission.
The US Attorney’s Office and US Trustee’s Office criticized Voyager Digital’s bankruptcy plan in front of lawmakers because they disapproved of the clauses that were there. They took specific steps during the bankruptcy in the hopes of preventing legal claims for employee protection. The legal representatives contended that the approval order for the plan was excessively broad and would prevent the government from filing a lawsuit or enforcing regulations in the event that wrongdoing was later discovered. The judge declined, arguing that punishing Voyager Digital or its employees would not be fair given that the court had already approved the sale of the company to Binance US.
The Deciduou
The Judge ordered the parties to present in court any proof of wrongdoing in connection with the bankruptcy that had been discovered by an administrative body or the Department of Justice. As a result of the SEC’s inability to offer any evidence that the securities laws had been broken, the agency’s objections to the plan were also rejected. The SEC had expressed concerns about the sale’s legality. The contract stipulated that Binance US would acquire the cryptocurrency holdings of Voyager Digital’s clients in return for 20,000,000 dollars in cash.
They claimed that the safety nets would allow for the effective approval of transactions and digital assets that might otherwise be illegally traded or unregistered securities. A US District Judge in Manhattan decided that the sale should be put on hold, rejecting Voyager’s argument that a delay might cause Binance US to renege on the agreement completely. Attempts to reach Voyager and Binance US for comment were unsuccessful.
Why was Binance US sued again?
One of several lawsuits the CFTC has brought against Binance.com, the U.S. Commodity Futures Trading Commission (CFTC) filed one today alleging that the company operated an “illegal” exchange and a “sham” compliance program. Even though Binance.US adamantly asserts that it is completely independent of Binance.com, it functions as the “U.S. partner” to the biggest cryptocurrency exchange in the world.
The CFTC challenged that assertion in its lawsuit, claiming that Binance staff “dictated Binance.US’s corporate strategy, launch, and early operations” and that it still has ties to BAM Trading, a company run by the CEO and founder of Binance.
Conclusion
The sale of Voyager Digital’s assets to Binance US is groundbreaking news. It is because of the various events of the crypto crash TerraUSD and Luna that also caused Voyager Digital to file for bankruptcy. It resulted in an appeal to the Bankruptcy court by the Department of Justice, The Southern District of New York US Attorney’s Office, and the Office of the US Trustee. Later on, Binance US was sued again by the U.S. Commodity Futures Trading Commission (CFTC). This blog details all the developments so far regarding the matter.
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