US Authorities Objected to New Deal of Cryptocurrency Exchange Binance!

US state officials say Binance’s bankrupt New York-based cryptocurrency objected to its agreement to purchase user accounts from firm Voyager Digital, saying the buyer’s opaque financial situation, foreign ownership and business practices put US customers at risk.

Texan Regulators Oppose Binance’s Acquisition of Voyager

Texas financial regulators noted uncertainty about Binance’s ties to foreign subsidiaries and related parties, as well as the personal financial situation of Binance owner Changpeng Zhao, saying they could not protect consumers who do business with foreign entities.

The bankruptcy court will take into account the views of government officials when considering a proposed settlement for Binance to purchase Voyager’s customer accounts from Chapter 11. Binance stepped in as the winning bidder after a previous deal to migrate Voyager’s accounts to FTX failed.

Since the collapse of FTX, Binance’s own finances have come under increasing scrutiny.

The U.S. Securities and Exchange Commission (SEC) also contested the deal, saying the parties did not provide enough information about Binance’s capacity to complete a deal as large as the Voyager acquisition, or how they plan to protect clients’ assets from theft or loss.

Separately, the US government said in court documents that a national security review by the Foreign Investment Committee in the US could affect Voyager’s ability to complete the deal, the timing or terms of such a deal.

Binance argues that the Binance.US subsidiary is separate from parent company Binance.com. However, Texas authorities claim that under user agreements, US customers will grant certain rights and authorizations to non-US Binance entities and Zhao over their accounts.

The Binance representative said the company will work to provide any information requested by interested parties as part of the review of the Voyager acquisition. “We look forward to completing the transaction and bringing Voyager customers to Binance.US,” the representative said.

The New York attorney general said in a court filing this week that customers in New York and other states where Binance is not licensed to operate are treated worse than other users.

Regulators from Vermont and New Jersey argued in court documents that Binance.US failed to prove its eligibility as a buyer or whether there were threats to its solvency.

*Not investment advice.

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