Multiple U.S. regulatory agencies raise suspicions and have opposed Binance's acquisition of Voyager assets.

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Multiple U.S. regulatory agencies raise suspicions and have opposed Binance

Binance.US's $1.022 billion acquisition of Voyager assets has raised concerns from multiple U.S. regulatory agencies. Their worries include whether Binance can afford such a large-scale transaction and how Binance plans to protect user assets given the limited disclosure of information.

Previously reported, Voyager Digital announced that it had selected BAM Trading Services Inc., the operator of Binance.US, as its acquirer. Binance.US bid $1.022 billion, including the fair value of Voyager's cryptocurrency investment portfolio.

The acquisition agreement by Binance.US is set to be completed under a bankruptcy plan, with the transaction to be finalized immediately upon court approval, allowing Voyager to return funds to customers.

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Voyager had initially planned to await court approval for the asset sale at a hearing on 1/5. However, several U.S. regulatory agencies have filed objections to the acquisition motion in Voyager's bankruptcy proceedings, including:

  • U.S. Securities and Exchange Commission (SEC)

  • Texas Securities Board

  • Texas Department of Banking

  • New Jersey State Regulators

  • Vermont State Regulators

  • Independent Federal Bankruptcy Trustee

According to The Block's report, regulators' concerns regarding this acquisition include:

Table of Contents

SEC:
  • Information disclosure is not comprehensive

  • How does Binance.US plan to protect user assets?

  • It is uncertain whether Binance has the ability to complete transactions of this scale

Texas Securities Board, Texas Banking Department:
  • Provide special treatment to creditors in certain states

  • Voyager, Binance.US do not comply with Texas regulations and are not authorized to conduct business in Texas

New Jersey State Securities Board:
  • After acquisition, Voyager's assets will be transferred to Binance.US, and user assets may be further transferred to offshore exchanges such as Binance, beyond the control of U.S. regulatory authorities.