SEC comes out against Binance.US’s $1 billion deal to buy a bankrupt crypto firm’s assets

The SEC isn’t too eager on this concept, nevertheless. It claims the transactions essential to redistribute the property belonging to Voyager clients could violate the company’s guidelines in opposition to promoting or providing unregistered securities. The company additionally cites quite a few considerations in regards to the deal and says Binance.US doesn’t “adequately describe whether or not third events” may have entry to buyer wallets.

In the meantime, the New York Division of Monetary Companies (NYDFS) has one other criticism, alleging Voyager operated “illegally” within the state with out a license and “disadvantaged” New York clients of the patron protections granted by the state’s supervision. It additionally notes that as a result of Binance.US isn’t licensed or accessible in New York, Voyager clients primarily based within the state could have to attend longer to realize entry to their funds when in comparison with clients in states the place the service is offered.

“New York Account Holders may have no potential to manage the property of their accounts, together with whether or not to promote the cryptocurrency to keep away from additional threat within the risky cryptocurrency market,” the NYDFS writes. “In distinction, Account Holders in jurisdictions apart from Unsupported Jurisdictions (‘Supported Jurisdictions’) may have the liberty to commerce the cryptocurrency owed to them, outlined as ‘Web Owed Cash’ within the APA, as soon as their Binance US accounts are arrange and their property are migrated.”