Binance US’s acquisition of bankrupt Voyager Digital faces opposition from regulators


  • Binance US’s acquisition of bankrupt crypto lender Voyager Digital is facing stern opposition from the US SEC and financial regulators.
  • The SEC and US Trustee and state regulators from New Jersey and Vermont are concerned assets could be moved offshore. 
  • The commission has cast doubt on Binance’s financial ability to go through with the over $1 billion transaction. 

Binance US is facing stern opposition from the US Securities and Exchange Commission (SEC) and several financial regulators for its acquisition of bankrupt crypto lender Voyager Digital. The SEC questioned the adequacy of the information in Binance US’s disclosure statement and raised concerns over the exchange’s financial ability to go through with the $1 billion acquisition. 

Also read: Bitcoin price holds steady after FOMC minutes release, will BTC rally soon?

Binance US faces objections from the SEC and regulators in its acquisition of Voyager

Binance US, a cryptocurrency exchange available to US residents, is in the process of acquiring bankrupt crypto lender Voyager Digital. Regulators like the US Securities and Exchange Commission, the US Trustee and New Jersey and Vermont state regulators have filed a motion asking a judge to halt the acquisition of Voyager. 

Federal and State agencies objected to the possibility that assets could be moved offshore and it would be harder to recover them on behalf of consumers. The SEC has cast doubt on Binance’s ability to go through with the $1.02 billion purchase of the bankrupt firm’s assets. 

In the filing, the SEC questions the adequacy of the information in the exchange’s disclosure statement, specifically on the ability of the crypto exchange to successfully complete the transaction of a high magnitude. The US financial regulator needs details on how the exchange would rebalance its cryptocurrency portfolio.

The regulator shared the concerns with Binance US’s counsel and the legal team said that a revised disclosure statement will be filed prior to the next hearing on the motions

According to the New Jersey Bureau of Securities, Binance will have the freedom to direct the cryptocurrency as it wishes, such that without customer knowledge, the cryptocurrency might wind-up in an offshore (non-US custodial) account, outside the reach of US regulatory and enforcement authorities.

Voyager Digital went into bankruptcy in July 2022 and agreed to sell its assets to the bankrupt exchange FTX, before Binance revealed plans to acquire the lender. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

MANTA suffers 4% pullback after unlocking tokens worth $40 million

MANTA suffers 4% pullback after unlocking tokens worth $40 million

Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks. 

More Cryptocurrencies News

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says

The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30. 

More Ripple News

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction

Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000. 

More Bitcoin News

If Bitcoin restarts bull run, these altcoins are likely to explode Premium

If Bitcoin restarts bull run, these altcoins are likely to explode

If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm. 

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP