The United States Securities and Exchange Commission (SEC) has filed a motion objecting to the sale of Voyager Digital’s belongings to crypto exchange Binance.US in a $1 billion deal.
According to a Wednesday submission submitted to the United States Bankruptcy Court for the Southern District of New York, the SEC alleges that the transaction might contain the sale of unregistered securities.
SEC Opposes Voyager Asset-Sale Plan
In December, Voyager Digital entered an address Binance.US to sell its belongings to the American trade. Upon of entirety, the settlement is meant to look like Voyager’s customers gain get entry to their funds at the Binance.US platform.
In January the SEC objected to the deal due to the fact the settlement did now not supply details on consumer reimbursements. The Commission requested that Voyager provides additional information on the way it intended to steady consumer assets and ensure safety towards theft or loss from its operators and Binance US.
The regulator also desired to make sure that customers were absolutely reimbursed earlier than Voyager took whatever from the deal.
The SEC has now filed another objection, stating that it’s far from investigating whether or not Voyager violated anti-fraud federal securities legal guidelines. The organization stated the deal should involve the sale of unregistered securities as it was nevertheless scrutinizing Voyager’s VGX token.
“Here, the transactions in crypto property essential to effectuate the rebalancing, the re-distribution of such belongings to Account Holders, may also violate the prohibition in Section 5 of the Securities Act of 1933 against the unregistered offer, sale, or shipping after sale of securities,” the SEC said.
Binance.US is Under Investigation: SEC
Furthermore, the SEC referred to the latest reports about U.S. Regulators’ probe into Binance over cash laundering rule violations as a purpose the deal could no longer pull thru.
“There are numerous public reviews and press bills concerning investigations into the customer and its affiliates. Regulatory moves, whether related to Voyager, Binance.US, or both, ought to render the transactions inside the Plan not possible to consummate, for that reason making the Plan unfeasible,” the commission added.
Meanwhile, the SEC is not the simplest entity that has objected to the deal. The Federal Trade Commission (FTC) and New York State’s Department of Financial Services (NYDFS) have filed separate opposition.