By Richard Hines
Jim Cramer, the anchor of CNBC’s Mad Money show, believes there is more to be uncovered regarding the Binance exchange, the biggest crypto exchange, indicating that it has been placed on the United States regulators radar for certain faults in the firm.
Shady Dealings In Binance?
Cramer also stated that the SEC issue with Binance may be more serious than we think, which resulted in the SEC impending Binance’s purchase of the defunct Voyager corporation.
However, he continued by saying that while he has no interest in the cryptocurrency industry, he is more concerned about the potential losses for investors in the event that the SEC finds some shady activity at the Binance exchange.
Cramer continues to express his worry for investors in the cryptocurrency market and the risks they take when dealing with these assets while maintaining his anti-bullish stance on the market.
The SEC called off a deal between Voyager and Binance on the subject of acquisition. The United States even went further to offer a deal to buy the assets of the now-insolvent Voyager lending company for a whopping $1 billion.
The questionable capacity of Binance to cover a transaction value of this kind was one of the flaws mentioned about Binance in the SEC filing. It also prompted questions about how the Binance U.S. company plans to safeguard the assets of its clients and complete the blanks in its reserve.
The Acquisition Deal Between Binance And FTX
The Voyager Lending Company revealed in December that it intended to sell its firm to the Binance exchange for more than $1 billion. However, this proposal from Binance resulted from the bankrupt FTX exchange’s failure to close the deal with Voyager.
FTX had originally intended to acquire the defunct loan platform Voyager, but owing to its liquidity crisis and bankruptcy, it was unable to complete the agreement. As a result, Binance intervened and put forward its own proposal to buy this company for $1.02 billion.
There have been a series of times when Cramer questioned Binance dealings; at one point, he said he would prefer to invest his money in a sports betting firm rather than a centralized exchange like Binance.