US SEC Objects Binance US' $1.02B Acquisition of Voyager Digital

The US Securities and Exchange Commission (SEC) submitted a file on February 22nd to object to the approval of Binance US' $1.02 billion acquisition of Voyager Digital, because it's investigating whether Voyager violated federal securities laws.

Last December, Voyager announced that BAM Trading Services Inc. (Binance US) would acquire its assets for $1.02 billion. But in January, the SEC filed limited objection to the deal.

In the latest objection, the SEC said Voyager's reorganization plan doesn't provide sufficient information regarding the security of assets on the Binance US platform, such as whether third parties will have access to customer wallets or what safeguards have been established to prevent the transfer of customer assets. In addition, the SEC noted that, according to the plan, the debtors will retain the right to sell crypto assets to provide a distribution to account holders, but Voyager has yet to demonstrate that they would be able to conduct such sales in compliance with the federal securities laws.

Besides the SEC, New York State's Department of Financial Services (NYDFS) also filed objection to the Binance US-Voyager deal. The institution made allegations that Voyager was unlawfully serving customers in the state.