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

The SEC isn’t too keen on this idea, however. It claims the transactions necessary to redistribute the assets belonging to Voyager customers may violate the agency’s rules against selling or offering unregistered securities. The agency also cites numerous concerns about the deal and says Binance.US doesn’t “adequately describe whether third parties” will have access to customer wallets.

Meanwhile, the New York Department of Financial Services (NYDFS) has another complaint, alleging Voyager operated “illegally” in the state without a license and “deprived” New York customers of the consumer protections granted by the state’s supervision. It also notes that because Binance.US isn’t licensed or available in New York, Voyager customers based in the state may have to wait longer to gain access to their funds when compared to customers in states where the service is available.

“New York Account Holders will have no ability to control the assets in their accounts, including whether to sell the cryptocurrency to avoid further risk in the volatile cryptocurrency market,” the NYDFS writes. “In contrast, Account Holders in jurisdictions other than Unsupported Jurisdictions (‘Supported Jurisdictions’) will have the freedom to trade the cryptocurrency owed to them, defined as ‘Net Owed Coins’ in the APA, once their Binance US accounts are set up and their assets are migrated.”