Binance’s $1 Billion Acquisition Deal With Voyager Hits Hurdles in the US

04/01/2023 13:22 • AI & Tech Insights • 71 views

According to reports, a New York judge said on Friday that the United States government had a “substantial case case case” in opposing Binance. US’s $1 billion acquisition of the assets of bankrupt cryptocurrency lending agency Voyager. District Judge Jennifer Rearden shelved the $1 billion deal, but said she would work to quickly resolve the dispute, considering that the delay could result in property losses of up to $10 million per month. （Coindesk）

Judge: The U.S. government has filed cases against the Voyager Bince. US transaction; Substantive; Reason for

In recent years, cryptocurrency has become a popular investment option for many individuals, leading to the growth of various cryptocurrency exchanges around the world. Binance, one of the largest cryptocurrency exchanges by trading volume, has been expanding its business and recently made a move to acquire the assets of bankrupt cryptocurrency lending agency Voyager. However, the deal is now facing hurdles in the United States as the government has opposed the acquisition. This article will explore the reasons behind the opposition and the potential consequences of the delay in the deal.

The Background of Binance and Voyager Acquisition Deal

Binance was founded in 2017 in China and has since relocated its operations to Malta due to regulatory challenges in China. The company has quickly become one of the largest cryptocurrency exchanges worldwide, with a daily trading volume of over $10 billion. Voyager, an American cryptocurrency lending agency, filed for bankruptcy in 2020 due to poor management and lack of profitability.
In February 2021, Binance announced its intention to acquire Voyager’s assets for $1 billion. The deal was expected to be completed by the end of the first quarter of 2021, but the US government’s opposition has led to delays.

The US Government’s Opposition

According to reports, US District Judge Jennifer Rearden stated that the government had a “substantial case” in opposing Binance’s acquisition of Voyager’s assets. The opposition revolves around the concern that Binance may have violated US securities laws, leading to concerns about money laundering and the potential financing of terrorism.
The US government’s opposition to the acquisition deal is not surprising as the Securities and Exchange Commission (SEC) has been keeping a close eye on Binance’s operations. In March 2021, the SEC filed a lawsuit against the company for alleged violations of securities laws in the US. Binance has been accused of offering securities to US investors without registration, which is a violation of the law. This opposition from the government now puts the future of Binance’s operations in the US in doubt.

The Consequences of the Delay

The delay in the acquisition deal could lead to significant losses for both Binance and Voyager. District Judge Jennifer Rearden emphasized the importance of a quick resolution to the dispute, as property losses could amount to $10 million per month. Binance’s planned expansion into the US market could also be affected, leading to significant market share losses.

Conclusion

In conclusion, the US government’s opposition to Binance’s acquisition of Voyager’s assets has led to a delay in the deal’s completion. The opposition revolves around potential violations of securities laws in the US, and Binance may face significant consequences if the opposition is upheld. Meanwhile, Voyager’s bankruptcy assets are still in limbo, leading to potential losses for both parties. It remains to be seen how this dispute will be resolved, but the cryptocurrency world is watching closely.

FAQs

#1. What is Binance?

Binance is one of the largest cryptocurrency exchanges worldwide, established in 2017 in China and currently based in Malta.

#2. What is Voyager?

Voyager is a cryptocurrency lending agency that filed for bankruptcy in 2020 due to poor management and lack of profitability.

#3. Why is the US government opposing Binance’s acquisition of Voyager’s assets?

The government’s opposition revolves around potential violations of securities laws in the US, leading to concerns about money laundering and the potential financing of terrorism.

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