• Binance’s CEO Changpeng Zhao has confirmed that the acquisition of Voyager Digital by BinanceUS is still on.
• A US bankruptcy judge criticized the SEC for attempting to block the sale of Voyager Digital to Binance US.
• The SEC believes that this deal should be halted because it would allegedly constitute an illegal transaction under current regulations.
Binance and Voyager Deal
The Securities and Exchange Commission (SEC) has objected to BinanceUS’s attempt to acquire cryptocurrency lender Voyager Digital, leading to speculation in the crypto community that Binance had called off the deal. However, Binance’s CEO Changpeng Zhao has reassured users in a Twitter post that the deal is still on and will help return funds to users as soon as possible.
According to a March 2 Reuters report, a U.S. bankruptcy judge has criticized the SEC for attempting to block the potential sale of crypto brokerage firm Voyager Digital to Binance.US. Judge Michael Wiles from the Southern District Bankruptcy Court in New York stated that the SEC had essentially asked to “stop everyone in their tracks”. He added that the regulator’s conviction that “everything other than Bitcoin” is a security is still standing, negatively impacting the industry.
Will It Be Completed?
Judge Michael Wiles appeared skeptical of the SEC’s attempt at blocking a potential purchase of defunct crypto lender Voyager Digital by Binance subsidiary BinanceU.S during a court hearing on Thursday. The SEC argued that there were no safeguards in place which could ensure customer assets are not transferred off from platform but CZ denies all rumors around this deal being called off . A spokesperson told Reuters that they would work with relevant parties if requested information was provided by them .
Implications Of The Deal On Crypto Industry
The alleged “sale of securities” has recently impacted companies such as Kraken, which was forced to shut down its staking services in jurisdictions where SEC operates due its recent approach towards crypto industry regulations . If completed , this deal between Biance and voyager can set an example for other exchanges , lending platforms and crypto related businesses operating within United States .
It remains to be seen whether or not these two companies will be able finalize this acquisition amidst all allegations put forward by Securities and Exchange Commission against it . But one thing is certain , if done correctly it could open up new avenues for cryptocurrency related businesses operating within United states while setting standards regarding customer asset protection across entire industry .