SEC cryptocurrency increasing pressure on the industry. Finally, with the New York regulators of Voyager He is objecting to a billion-dollar deal he made with Binance, which they say could be unlawful and discriminatory.
SEC Objected to Binance.US’s $1 Billion Voyager Deal Allegedly Unregistered Securities Sale
The $1.02 billion deal by Binance.US to buy the assets of defunct crypto lender Voyager was challenged by New York and Federal financial regulators, who said in filings Feb.
The SEC said elements of the proposed Binance.US-Voyager deal could also violate the law, given how the plan envisions refunding Voyager’s former customers.
Under the agreement, “transactions in crypto assets necessary to effect rebalancing, redistribution of such assets to account holders may violate the prohibition against unregistered offer, sale, or delivery after the sale of securities under Section 5 of the Securities Act of 1933.” It referred to the VGX token issued by Voyager.
“It is the responsibility of Borrowers to provide credible evidence that the provisions of the Plan are enforceable and do not violate applicable law,” the SEC said.
The regulator also cited media reports that the crypto exchange is preparing to pay penalties for past money laundering and corruption law violations as proof that the deal could become “impractical” and “impossible to complete.”
The New York State Department of Financial Services (NYDFS) and Attorney General Letitia James also challenged the deal on February 22, with two filings involving allegations that Voyager served customers in the state illegally.
“Although none of the Borrowers is licensed in New York, the Department is aware of allegations and other information that indicates that one or more of the Borrowers may have and may continue to operate in New York in violation of Applicable Law,” the NYDFS filing said.
While the SEC’s repressive policy on cryptocurrencies continues, Bitcoin (BTC) was trading at $ 24,300 at the time of this writing.
*Not investment advice.
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