Several regulators are opposing Binance.US's plans to acquire Voyager Digital assets.
The Binance.US deal to purchase the assets of bankrupt crypto lender Voyager Digital for $1.02 billion is facing opposition from multiple fronts. State and federal agencies oppose the planned sale of defunct crypto lender Voyager Digital to Binance.US.
At the federal level, the US Securities and Exchange Commission (SEC) is leading the way. In its objection, US SEC claims the deal violates federal securities laws.
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According to the SEC's filing, the main issue of contention is Voyager native token VGX. It also took issue with Binance.US's plan to repay former Voyager customers in crypto. By doing so, in its opinion, Binance.US would violate "the prohibition in Section 5 of the Securities Act of 1933 against the unregistered offer, sale, or delivery after the sale of securities."
At the state level, the NYDFS, the financial watchdog in New York, has filed a separate opposition to the deal based on similar claims.
In Texas, the Department of Banking has also opposed the deal because the two companies have allegedly failed to comply with Texan law. Texan authorities allege that the two companies are not licensed in the state.
Voyager has to prove that the sale agreement does not violate securities law. In New York, the attorney general also took issue with how long it would take for customers to get repaid. Based on the original deal, Voyager customers would need to wait at least six months before Binance.US receives approval to operate in the state.
It is worth noting that a month ago, US Securities and Exchange Commission filed a limited objection to Binance.US’s Voyager acquisition deal. At that time, US SEC argued that Voyager and Binance.US failed to provide "necessary information" about the acquisition deal.