- Binance.US’s $1.02 billion acquisition of Voyager is facing regulatory opposition.
- The SEC stems from concerns about the deal’s potential risks and legal violations.
- The opposition from regulators underscores the challenges faced by cryptocurrency companies.
Binance.US’s plans to acquire defunct crypto lender Voyager assets for $1.02 billion has hit a significant roadblock, as New York and U.S. federal financial regulators oppose the deal.
The Securities and Exchange Commission (SEC) has raised concerns about the legality of the proposed deal between Binance.US and Voyager. According to SEC filings, the regulatory body has noted that the terms of the agreement may infringe on the law, particularly regarding how the plan aims to repay Voyager’s former customers.
Binance.US, the American affiliate of the world’s largest cryptocurrency exchange Binance, announced its intention to acquire the assets of Voyager in January. The deal would have provided Binance.US with Voyager’s customer accounts, technology platform, and other assets, potentially expanding its presence in the U.S. market.
The SEC adds that the deal also faced opposition from New York State’s Department of Financial Services (NYDFS) and Attorney General Letitia James. In two filings on February 22, the regulators alleged that Voyager had been unlawfully serving customers in the state, thereby violating New York’s virtual currency regulations.
The regulators argued that Binance.US’s acquisition of Voyager’s assets would perpetuate the illegal activity and result in the exchange benefiting from such violations.
According to cryptocurrency proponents, the regulatory opposition to the Binance.US and Voyager deal could have significant implications for both companies. For example, it could prevent Binance.US from expanding its operations in New York and force Voyager to face legal consequences for its alleged violations.
The move also highlights the increasing focus of U.S. regulators on enforcing cryptocurrency regulations and cracking down on illegal activity in the sector.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
