Binance.US runs an unregistered exchange : SEC lawyer 

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Key Takeaways:

  • According to a Securities and Exchange Commission representative, Binance US is allegedly running an unlicensed commodities exchange in the United States.
  • William Uptegrove of the SEC expressed worry that the sale and offering of Voyager’s VGX token have characteristics of securities transactions.

During a Voyager Digital bankruptcy hearing on Friday night, a lawyer stated that Securities and Exchange Commission staff believes that Binance.US is running an unregistered securities exchange in the United States.

Speaking during a meeting to decide whether Voyager should be sold to Binance during a bankruptcy.

Judge Michael Wiles of the Southern District Bankruptcy Court in New York stated at the beginning of the hearing that the SEC had provided little direction or specific details about its disapproval of the Voyager sale. US SEC Senior Trial Attorney William Uptegrove stated that he was responding to Judge Wiles.

In light of FTX’s demise, U.S. authorities are taking their efforts to regulate cryptocurrency markets seriously. The SEC, the NYDFS, and the U.S. The Department of Justice is among the organisations taking proactive approaches..

Three US senators, led by Elizabeth Warren, have voiced concern recently about a number of aspects of Binance’s operations and have requested information from the company, including a copy of their balance sheets. 

Judge Michael Wiles is debating whether to consent to the planned transfer of assets from Voyager to Binance. US. Wiles rebuffed the SEC’s objection to the transaction on Thursday because the SEC had provided scant supporting documentation.

On Friday night, the commission’s attorney requested a private meeting with the judge, claiming “statutory limitations on our ability to share nonpublic information.” The judge encouraged the commission to make its comments public after a short private discussion involving the SEC, the Voyager debtors, the debtors’ attorneys, and counsel for Binance.US.

Wiles stated, “This is a public court process. I believe that everyone has a right to hear anything that clarifies the foundation for the SEC’s stance.”

Since the SEC took no official stance, Wiles claimed he still did not have very much clarification even after the SEC lawyer made it clear that the staff thinks Binance is running an unregistered securities exchange.

 The United Security and Exchange Commission (SEC) and the New York Department of Financial Services (NYDFS) are opposed to and are continuing to look into the Voyager Digital deal. This does not seem to have any impact on  Binance Chief Executive Officer (CEO) Changpeng Zhao (CZ)as he reaffirmed his support for retaining the deal in a tweet on Thursday.

Changpeng Zhao (CZ) is still dedicated to supporting the acquisition transaction and, if allowed, assisting in the “return of funds” to users as soon as is practicable, regardless of the uproar.

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Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

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