Following the dramatic crash of crypto exchange FTX, all eyes are on cryptocurrency giant Binance. Cryptocurrency exchange Binance has faced turmoil this month with more than $7 billion in withdrawals in just three days.
Additionally, questions about Binance's financial health have surfaced, with many questioning the exchange's Proof-of-Reserves report. On the same Friday, Binance's accounting partner Mazars Group decided to cut ties with the exchange.
With all these developments, the cryptocurrency community is wondering if Binance is going the way of FTX. So far, Binance has handled withdrawals well and has stated that it is in a comfortable financial position.
On Monday, December 19, Reuters released a detailed report claiming that Binance's books are a black box. Reuters has accused cryptocurrency exchange Binance of withholding details of his main business from the public. Public opinion has also noted that Binance has actively avoided oversight of its platform. They added:
Binance declines to disclose where Binance.com is based. It does not disclose basic financial information such as revenues, profits and cash reserves. The company has its own cryptocurrency, but does not disclose the role it plays in its balance sheet.
Lend clients money against their cryptocurrency assets and allow them to trade on margin, with borrowed funds. But it does not specify the size of these bets, Binance's exposure to this risk, or the size of its reserves to fund withdrawals.
The United States Department of Justice (DoJ) and other regulators are investigating Binance on allegations of money laundering and sanctions violations.
Binance acquires Voyager Digital and Tokyo Crypto
Despite numerous allegations leveled at Binance, the cryptocurrency exchange continues to expand its market presence. On Monday, Binance US announced it was buying the assets of bankrupt cryptocurrency lender Voyager Digital for $1,022 billion. The head of Binance, Changpeng Zhao, already announced last month that the cryptocurrency exchange was willing to make a new offer for Voyager assets.
In a statement on Monday, Voyager said, “Binance.US's offering aims to return cryptocurrencies to customers in kind, in accordance with court-approved disbursements and platform capabilities.” As part of the deal, Binance US will make a good faith deposit of $10 million and reimburse Voyager for certain expenses up to $15 million. In the January 5, 2023 hearing, Voyager Digital will also seek approval from the bankruptcy court.
In another major development, Binance has acquired the Indonesian exchange Tokyocrypto. We remind you that it is an exchange and not a trading platform like Bitcoin system. Currently, Binance has become the majority shareholder of the exchange. However, it does plan to acquire all the shares of Tokyocrypto over a certain period of time.
This would allow Binance to operate legally in Indonesia under the authorization of the Commodity Futures Trading Regulatory Agency (BAPPEBTI). Pang Xue Kai, founder and former CEO of Tokyocrypto, said:
Tokocrypto was our brainchild over four years ago and I am very proud to see the growth, achievements and contribution the company has made to advance the Indonesian digital economy.
