US SEC Objects to Binance.US’s Plans to Acquire Voyager’s Assets

On Feb 23, 2023

The United States Securities and Exchange Commission (SEC) has filed a motion objecting to the sale of Voyager Digital’s assets to crypto exchange Binance.US in a $1 billion deal.

According to a Wednesday filing submitted at the United States Bankruptcy Court for the Southern District of New York, the SEC alleges that the transaction would involve the sale of unregistered securities.

SEC Opposes Voyager Asset-Sale Plan

In December, Voyager Digital entered a deal with Binance.US to sell its assets to the American exchange. Upon completion, the contract is supposed to see Voyager’s users gain access to their funds on the Binance.US platform.

In January, CryptoPotato reported that the SEC objected to the deal because the agreement did not give details on customer reimbursements. The Commission requested that Voyager provide further details on how it intended to secure customer assets and ensure protection against theft or loss from its operators and Binance US.

The regulator also wanted to ensure that customers were fully reimbursed before Voyager took anything from the deal.

The SEC has now filed another objection, stating that it is investigating whether Voyager violated anti-fraud federal securities laws. The agency said the deal could involve the sale of unregistered securities as it was still scrutinizing Voyager’s VGX token.

“Here, the transactions in crypto assets necessary to effectuate the rebalancing, the re-distribution of such assets to Account Holders, may violate the prohibition in Section 5 of the Securities Act of 1933 against the unregistered offer, sale, or delivery after sale of securities,” the SEC said.
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Binance.US is Under Investigation: SEC

Furthermore, the SEC cited recent reports about U.S. regulators’ probe into Binance over money laundering rule violations as a reason the deal would not pull through.

“There are numerous public reports and press accounts concerning investigations into the purchaser and its affiliates. Regulatory actions, whether involving Voyager, Binance.US, or both, could render the transactions in the Plan impossible to consummate, thus making the Plan unfeasible,” the commission added.

Meanwhile, the SEC is not the only entity that has objected to the deal. The Federal Trade Commission (FTC) and New York State’s Department of Financial Services (NYDFS) have filed separate oppositions.

This article originally appeared here.