Binance, the largest cryptocurrency exchange platform, is reportedly getting closer to acquiring the assets of Voyager Digital, a cryptocurrency broker. This is said to have happened after a bankruptcy judge approved the process today, despite the Securities and Exchange Commission’s objections. According to reports, the now-bankrupt crypto broker had to sell its distressed assets to Binance US, who will now handle returning the money to the company’s customers.
As the American subsidiary of Binance, the largest cryptocurrency exchange in the world, Binance US is well-known. The aforementioned affiliate, despite being an affiliate, claims to operate independently from Binance and is purportedly serving American consumers. The aforementioned assertion is believed to have been questioned, including the bankruptcy procedure for the crypto broker.
The Securities and Exchange Commission of the United States allegedly filed an objection to the said transaction in early January of this year. According to reports, the said regulatory agency has requested additional information about the financial viability of Binance US’s business, a request that only they have made.
According to reports, the Federal Trade Commission, as well as Texas regulators the Texas State Securities Board and the Texas Department of Banking, have filed their own objections to the transaction, but on different and disparate grounds.
In addition, Damian Williams, the U.S. The Southern District of New York’s attorney has reportedly labeled the said move, which seeks legal protection from potential civil or criminal fraud charges, as “blatantly illegal,” and the state securities regulator in New Jersey has stated that it supports this objection.
SEC: Voyager is an Unregistered Security
According to the SEC, Voyager’s VGX token may be an unregistered security. The aforementioned allegation allegedly surfaced before the end of February this year. The regulatory agency also stated that the transactions to return assets to US customers “may violate” its rules prohibiting the sale of unregistered securities. As a result, they label Binance US as an unregistered securities exchange.
Judge Michael Wiles, however, is said to have been unpersuaded by the SEC’s opposition. The judge’s alleged response was a result of the SEC not taking a formal position on the subject. In this case, staff at the Commission chose to state that they “believed” Voyager and Binance US may have broken securities laws rather than really having one.