According to court filings, the US Securities and Exchange Commission and New York's top financial regulator have challenged Binance US's $1 billion deal to acquire insolvent crypto lender Voyager. This is the latest in a series of regulatory efforts against crypto businesses.
The deal may violate regulations regarding the unregistered offer and sale of securities, according to a filing by the SEC on Wednesday. It also highlighted press reports of US investigations into the global Binance cryptocurrency exchange, of which Binance.US is ostensibly an independent partner, as evidence that the transaction may become "impossible to consummate."
In Wednesday filings, New York's chief financial regulator and Attorney General Letitia James also objected to the deal. Voyager, according to the New York Department of Financial Services, "illegally operated a virtual currency business within the state without a license."
Binance US and an attorney for Voyager Digital did not reply immediately to Reuters' requests for comment.
The complaints come at a time when the SEC is targeting companies that provide a variety of crypto services, from stablecoins to "staking." It informed the issuer of Binance's stablecoin, Paxos Trust Company, that it should have registered the product as a security and is considering taking action against it, Paxos Trust Company announced last week.
Reuters reported in December that the US Justice Department is investigating the global Binance exchange for alleged money laundering and sanctions violations.
A senior Binance official told the Wall Street Journal last week that the company anticipated to pay fines to conclude the investigations.
Voyager filed for bankruptcy in July, becoming one of a number of crypto firms impacted by the 2022 token price crash.
Last month, Voyager received initial court permission for the deal. US Committee on Foreign Investment in the United States stated in a December court filing that a national security review may delay or halt the deal.
By fLEXI tEAM