I have been clear that the CFTC will continue to use all of its authority to find and stop misconduct in the volatile and risky digital asset market," CFTC chair Rostin Benham said in a statement.īinance and Zhao took steps to purposefully obscure where the exchange's subsidiaries were located, the regulator said. "Today's enforcement action demonstrates that there is no location, or claimed lack of location, that will prevent the CFTC from protecting American investors. Zhao and Lim allegedly "actively cultivated lucrative and commercially important 'VIP' customers, including institutional customers, located in the United States," the complaint said. Just days prior to the CFTC filing, CNBC reported on how Binance employees worked to subvert the exchange's compliance controls in China, using some of the same techniques that the CFTC alleges Binance to solicit U.S. The regulator alleged that Binance, Zhao, and Lim violated eight core provisions of the Commodity Exchange Act, including laws that require controls "designed to prevent and detect money laundering and terrorism financing." Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower But now that FTX itself has filed for bankruptcy, which includes West Realm Shires, the FTX company that won the auction, it can no longer complete the deal.Best Debt Consolidation Loans for Bad Credit In September, after turning down what it called a “ low-ball bid” from FTX, Voyager Digital accepted a $1.4 billion bid from the company to acquire its distressed assets. In June, the crypto asset manager revealed that it had a $661 million exposure to now-defunct hedge fund Three Arrows Capital, which itself filed for bankruptcy on July 2. Voyager Digital filed for bankruptcy in July, with more than 100,000 creditors to whom it owes between $1 and $10 billion. “There will be no transaction with FTX, I think that is quite obvious.” “We were shocked, disgruntled, dismayed,” Joshua Sussberg said during a Voyager bankruptcy hearing in November, according to a Bloomberg report. But after Sam Bankman-Fried’s sprawling crypto empire filed for Chapter 11 bankruptcy protection in November, Voyager reopened the bidding process on its distressed assets. But later clarified that that percentage was “ for illustrative purposes” and actual payouts will depend on the market the day the deal closes.Ī few months ago, Voyager customers thought they’d be going through a similar payout process with FTX US. “These crypto movements are the primary driver of any changes to recovery value.”įor example, the committee wrote that customers would have seen a 51% recovery of their assets using market prices on December 18, 2022. “Voyager has a relatively high percentage of altcoins, which have underperformed in the market relative to BTC/ETH and stablecoins,” the creditor committee wrote on Twitter. Last month, Voyager’s Official Committee of Unsecured Creditors elaborated on Twitter, saying that actual recovery will depend on market prices. “Your actual recovery amount will be a percentage of your claim amount, as determined by Voyager’s rebalancing,” a screenshot in the court filing reads. That doesn’t mean customers are getting back 100% of what they’re owed, though. A claims portal set up by Voyager also shows users the value of their assets the company filed for bankruptcy, July 5, 2022. The rest of Voyager’s U.S.-based customers will need to provide personal details, like their email address, social security number, and date of birth, so a Binance US account can be created on their behalf. “To the extent Binance US does not receive the required licensing and/or authorization to operate in the unsupported states within 6 months from the closing of the asset purchase agreement, Voyager will convert the distributions allocable to such customers to cash and will distribute them separately,” Kirkland & Ellis partner Joshua Sussberg wrote in the court filing. But Binance US warned that customers in Hawaii, New York, Texas, and Vermont may have to wait up to six months longer because it can’t create accounts for users in states where it’s not allowed to operate.
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