US Regulators Seek to Stop Acquisition Deal Between Binance.US and Voyager

For Hannah Perez

Not so fast. The SEC filed a limited objection to Binance.US’s purchase of bankrupt firm Voyager’s assets.

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  • SEC and other US regulators object to the agreement between Binance.US and Voyager
  • Binance.US agreed to purchase Voyager’s assets for just over $1 billion
  • Regulators question the financial capacity of Binance to consummate the transaction
  • Voyager is one of the crypto lenders that filed for bankruptcy in 2022

The acquisition agreement for more than one billion dollars between Binance.US Y Digital Voyager could face some hurdles now that US regulators seek to intercept trading.

Several of the US regulators, including the Securities and Exchange Commission (SEC), have asked a judge to stop the acquisition of Digital Voyagera bankrupt cryptocurrency lender, by Binance.US.

As reported CoinDesk Y The Blockthe SEC on Wednesday filed a limited objection to the purchase and has questioned the information submitted by the US-based exchange, especially details about the ability of the cryptocurrency company to “consummate a transaction of this magnitude“.

Current disclosures for purchase do not include “needed information“, argued the SEC, who questioned the financial capacity of the US arm of Binance to carry out the transaction for USD $1,020 million.

In addition, the federal agency questioned the way in which Binance.US intends to secure client assets and asked for details on how it would rebalance its cryptocurrency portfolio, it added CoinDesk.

Not so fast Binance.US

In general, regulators not only raised concerns about the company’s finances but also about its corporate relationship with the global exchange, Binance. In addition to the SEC, the US Receiver within the Department of Justice (DOJ) and state regulators from New Jersey, Vermont and Texas filed separate motions objecting to the purchase agreement.

The New Jersey Securities Office, in particular, emphasized that after the transfer, “Binance.US will have the freedom to direct the cryptocurrency as it wishes, so that without the client’s knowledge, the cryptocurrency could end up abroad.“. Custody outside the US would be far away “beyond the reach of US regulatory and enforcement authorities.“, they argued, according to the coverage of The Block.

Secondly, the Texas State Securities Board and the Texas Department of Banking objected to the sale because they assert that voyager Y Binance.USdo not comply with Texas law and are not authorized to conduct business in Texas“, as quoted CoinDesk. In addition, they oppose thedisparate treatment provided to creditors in certain states”.

The US branch of Binance signed an agreement in December to purchase the assets of Digital Voyagera cryptocurrency company that filed for bankruptcy in mid-2022. The now-defunct FTX had agreed to buy voyageralthough the deal fell apart after the bankruptcy of the exchange in December.


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Article by Hannah Estefanía Pérez / DailyBitcoin

Edited image of Unsplash

CAVEAT: This is an informative article. DiarioBitcoin is a communication medium, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. They may not be appropriate for retail investors, as the entire amount invested could be lost. Check the laws of your country before investing.