The United States Securities and Exchange Commission (SEC) has objected to the proposed $1 billion acquisition of Voyager Digital by Binance.US. According to a filing on Tuesday, the SEC has alleged that the acquisition may involve the sale of unregistered securities. The SEC’s objection is the latest in a series of regulatory hurdles faced by Binance, the world’s largest cryptocurrency exchange by trading volume.
The SEC stated that Binance.US, a separate entity from Binance, may have violated securities laws by acquiring Voyager Digital without registering the tokens as securities. The SEC claims that Binance.US had full knowledge that the Voyager tokens were securities but still went ahead with the acquisition. The regulator has asked a judge to prevent the acquisition until the matter is resolved.
Binance.US had announced its intention to acquire Voyager Digital in December 2022, in a deal worth approximately $1 billion. Voyager Digital is a publicly-traded cryptocurrency brokerage firm that offers digital asset trading and custody services to retail and institutional investors. The acquisition was expected to expand Binance.US’s reach in the United States market, which has been subject to regulatory scrutiny.
The SEC’s objection to the acquisition is the latest setback for Binance, which has been facing increased regulatory pressure worldwide. In the United States, the company has been the subject of investigations by the Department of Justice and the Internal Revenue Service. Binance has also faced regulatory action in the United Kingdom, Thailand, and Japan.
Binance has responded to the SEC’s objection, stating that it “disagrees with the SEC’s allegations and intends to vigorously defend itself in court.” The company has stated that it has always been committed to complying with applicable laws and regulations and that it will continue to cooperate with regulators in its various markets.
The outcome of the case is uncertain, and it remains to be seen whether the acquisition will proceed as planned. The SEC’s objection is a reminder of the regulatory challenges faced by cryptocurrency companies operating in the United States and highlights the need for companies to navigate regulatory requirements carefully.