SEC opposes Binance.US acquisition of Voyager with securities allegations

The US Securities and Exchange Commission (SEC) objected to Binance.US spending $ 1 billion to buy back the bankrupt lending platform Voyager.

SEC opposes Binance.US acquisition of Voyager on securities allegations

According to court filings on February 22, both the US Securities and Exchange Commission (SEC) and the New York state government voiced their objections to Voyager’s deal to sell itself to Binance.US for $1 billion.

Specifically, the SEC said that the Binance.US – Voyager deal shows signs of violating US law in terms of compensation to investors. The Securities and Exchange Commission asserts that Voyager’s VGX token is a security, thus partially compensating users of the lending platform is a securities offering and transfer relationship.

The SEC in January also opposed the agreement, but citing concerns about the financial viability of Binance.US. The committee mentioned that Binance may be about to pay a fine to the US government for past wrongdoing, affecting its ability to pay for the deal.

Additionally, the New York Department of Financial Services and the New York State Attorney General filed two separate objections alleging Voyager was operating illegally in the state.

This is the latest move from the SEC and New York government to target the cryptocurrency sector, after penalizing Kraken for providing staking services and ordering stablecoin company Paxos to stop issuing BUSD coins to Binance.

Voyager is a cryptocurrency lending platform that went bankrupt in July 2022 after suffering from the collapse of the investment fund Three Arrows Capital. The company was originally sold to FTX, but after FTX also went bankrupt in November, Binance.US jumped in and reached a buyout deal for $1 billion.

VGX token price is showing signs of decline when news of SEC and New York government intervention in the acquisition is published.

1h chart of VGX/USDT pair on Binance exchange at 04:40 PM on 23/02/2023

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