SEC official considers Binance.US to be an unregistered exchange

The SEC alleges that Binance.US was organizing unauthorized securities trading, and therefore could not be authorized to execute the Voyager acquisition.

SEC official considers Binance.US to be an unregistered exchange

During the Voyager Digitail bankruptcy trial, an official from the United States Securities and Exchange Commission (SEC) commented that Binance.US is an unregistered securities exchange.

The trial took place in the context of the SEC and the New York government simultaneously submitting a petition to the court to oppose the exchange Binance.US’s acquisition of the bankrupt company Voyager for $ 1.1 billion.

The agency in late February objected to Binance.US’ deal to acquire Voyager, alleging that the VGX token is a security, violating registration regulations. The SEC also “tumbled” that Binance.US was about to pay a fine, so there were not enough financial resources to complete the transaction.

Attorney William Uptegrove representing the SEC said:

“We believe that – based on the information currently available to the SEC – Voyager’s VGX token sale is indicative of a securities transaction. The SEC also believes that Binance.US is operating an unregistered securities exchange in the US.”

However, the lawyer added that this is not the final position of this agency, the team of senior commissioners or the SEC Chairman.

When asked by the judge to provide specific reasons for the above argument, Mr. Uptegrove refused to disclose it in court because he said that the SEC investigation was still ongoing and could not be released to the public.

The SEC in recent times has continuously tightened legal action on the cryptocurrency sector in the United States after the catastrophic collapse in 2022.

And yet, the SEC also targeted Binance-branded stablecoin BUSD, continuing to use securities allegations to pressure BUSD management unit Paxos to stop issuing activities and start converting back to cash.

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