US Officials Attempting to Block Voyager Sale Again, Report Shows

According to a recent Bloomberg report, U.S. regulators are again attempting to interfere with the sale of the bankrupt crypto lender Voyager Digital to major crypto trading platform Binance.US.

Although U.S. Bankruptcy Judge Michael Wiles, overseeing Voyager’s Chapter 11 bankruptcy proceedings, has approved Binance.US’s acquisition of Voyager, the country’s regulators oppose the sale.

According to the report, other elements of the deal could go through, but not the legal protections provided in Voyager’s Chapter 11 filing. In addition, U.S. Bankruptcy Judge Michael Wiles, has agreed to hold a hearing on Wednesday to decide whether to halt Voyager’s indemnification provisions.

Voyager Deal Blocked By Regulators?

Securities and Exchange Commission (SEC) lawyers claim that parts of the deal and Voyager’s plan could violate federal law if fully consummated. According to the report, the SEC and other federal lawyers also alleged that the bankruptcy plan could determine future efforts to control the cryptocurrency market, appealing the approval of U.S. judge Wiles.

In addition, the SEC argued that the redemption token could constitute an unregistered securities offering, claiming that the American arm of the world’s largest crypto exchange is operating an unregulated securities exchange.

The SEC’s objection also cited reports in February of U.S. agencies’ investigations into Binance.US and the Binance crypto exchange, to which the CEO of Binance, Changpeng “CZ” Zhao, claimed that Binance.US works as an independent partner.

Moreover, New York’s top financial regulator and New York Attorney General Letitia James, have also objected to the deal filings in February. The New York Department of Financial Services (NYDFS) stated that Voyager “illegally operated a virtual currency business within the state without a license,” according to a Reuters report.

Binance has agreed to pay $20 mill

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Author: Ronaldo Marquez

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