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.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback

Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead. 

More Bitcoin News
GIGA investor loses $6M to phishing scam via fake Zoom link

GIGA investor loses $6M to phishing scam via fake Zoom link

On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.

More Cryptocurrencies News
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show

Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.

More Cryptocurrencies News
BNB: Bullish technical pattern validated, eyes all-time high

BNB: Bullish technical pattern validated, eyes all-time high

Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.

More Binance News
Bitcoin: Further upside likely after hitting new all-time high

Bitcoin: Further upside likely after hitting new all-time high

Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP