According to court documents on February 22, both the US Securities and Exchange Commission (SEC) and the New York state government objected to Voyager’s proposed $1 billion sale to Binance.US.
The Securities and Exchange Commission specifically said that the Binance.US – Voyager transaction appears to violate US law in terms of investor remuneration. According to the organization, Voyager’s VGX token is a security, and so partially paying lending platform users is a securities offering and transfer connection. The organization also rejected the arrangement in January, expressing worries about Binance financial US’s stability. The committee said that Binance may be poised to pay a fine to the US authorities for prior errors, which might limit its capacity to pay for the transaction.
Moreover, the New York Department of Financial Services and the New York State Attorney General also filed separate objections saying that Voyager was operating unlawfully in the state. This is the latest action by the organization and the New York government to pursue the cryptocurrency business, after penalties were imposed on Kraken for offering staking services and an order for stablecoin provider Paxos to cease distributing BUSD coins to Binance.
Voyager is a cryptocurrency loan firm that went bankrupt in July 2022 when the investment company Three Arrows Capital failed. The firm was originally sold to FTX, but after FTX declared bankruptcy in November, Binance purchased it. The United States intervened and struck a $1 billion buyout agreement.
As news of the organization and New York government participation in the deal is publicized, the VGX token price begins to fall.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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