U.S. Securities and Exchange Commission (SEC) scrutiny over the digital asset industry continues as the watchdog opposes the BINANCE US and defunct crypto lender Voyager $1 billion deal. Voyager received the initial court approval in January 2023.
Binance Fails To Provide Required Details
As per the filings, the US SEC is objecting to the final approval of the disclosure statement and the confirmation of the third amended Plan Joint Plan. It mentioned that the plan is unconfirmable under the bankruptcy code.
This move comes after the US SEC recently forced the crypto exchange Kraken to shut down its staking service. The exchange paid $30 million in penalties to settle with the agency. The commission didn’t stop there and went on to serve a notice to Paxos stating that to take an action alleging Binance USD (BUSD) a security.
US SEC mentioned recent news which brought up what can go wrong when platforms fail to ensure adequate measures around user assets. However, for account holders, there is no more important issue than this. Read More Crypto News Here…
US SEC Scrutiny Continues
It added that the Disclosure Statement and Plan did not hold the necessary details regarding the security of assets on the Binance.US trading platform. Precisely, the firm failed to decline that third parties including Binance.US affiliates or others, will have access to the keys for users’ wallets.
However, it also fails to explain the measure taken to ensure that customer assets are safe and not transferred off the mentioned platform. It further added no declaration has been filed by Binance.US regarding its internal controls and practices relating to safety.
US SEC states that the creditors and stakeholders should know whether the transaction($20 million sale of Voyager’s customer list to Binance) provides them a meaningful economic benefit. However, the commission concluded by stating that it holds all rights to present evidence at any evidentiary hearing over this matter.
- CZ Binance
- Voyager Token
- About author
