By:
Both the leading financial authority in New York and the United States, the Securities and Exchange Commission, have criticised Binance. According to court documents, the US’s $1 billion acquisition of the bankrupt crypto lender Voyager is the most recent in a series of regulatory actions against crypto companies.
According to a document by the SEC on Wednesday, the proposed acquisition might be against the law regarding the unregistered offer and sale of securities. The acquisition may become “difficult to conclude” due to news reports of U.S. investigations into the international Binance cryptocurrency exchange, of which Binance.US is a supposedly independent partner.
Letitia James, the state’s attorney general, and New York’s top financial regulator both opposed the purchase in files on Wednesday. Voyager “illegally ran a virtual currency business within the state without a licence,” according to the New York Department of Financial Services.
Binance.US and a lawyer representing Voyager Digital did not immediately respond to Reuters requests for comment.
The complaints come as the SEC investigates businesses that provide various cryptocurrency services, including “staking” and stablecoins. According to information released by Paxos Trust Corporation last week, it informed Binance’s stablecoin issuer that it should have registered the product as a security and is considering pursuing legal action.
According to a December report from Reuters, the U.S. Law Department is looking into alleged money laundering and sanctions violations at the international Binance exchange. The Wall Street Journal was informed last week by a senior official at Binance that Binance anticipated paying fines to end the probes.
Voyager filed for bankruptcy in July, one of a string of crypto companies caught in the 2022 collapse in token prices.
Last month, Voyager won preliminary court clearance for the transaction. The U.S. Committee for Foreign Investment in the United States warned in a court filing in December that a national security review by the United States might delay or prevent the deal.
Reading More:
