![]() Justice Department is investigating the global Binance exchange for possible money laundering and sanctions violations, Reuters reported in December. The objections come as the SEC targets companies offering a range of crypto services, from stablecoins to "staking." It told the issuer of Binance's stablecoin, Paxos Trust Company, that it should have registered the product as a security and is considering taking action against it, Paxos said last week. It later confirmed that the trading firm operated as a market maker on its platform. Reuters reported last week, citing banking records and company messages, that the global Binance exchange had secret access to a bank account belonging to Binance.US, and transferred large sums of money from the account to a trading firm managed by Binance CEO Changpeng Zhao.īinance.US called the reporting "outdated," saying that "only Binance.US employees have access" to its bank accounts. ![]() The deal also failed to detail what safeguards were in place "to ensure that customer assets are not transferred off the Binance.US platform", the SEC objection said. The SEC cited concerns over the security of assets at Binance.US, saying the planned deal did give enough information on whether third parties, "including Binance.US affiliates or foreign persons or entities," would have access to the keys for customers' digital wallets. In a statement, a Binance.US spokesperson said on Thursday the company would "work with relevant parties to provide any requested information, as Binance.US customer assets always remain on the platform, are held on a 1:1 basis and are fully reserved."Ī lawyer representing Voyager Digital did not immediately respond to requests for comment. The New York Department of Financial Services said that Voyager "illegally operated a virtual currency business within the state without a license". New York's top financial regulator and New York Attorney General Letitia James also objected to the deal in filings on Wednesday. ![]() "Regulatory actions" could mean the deal may become "impossible to consummate," it said. The SEC's objection also cited reports of US investigations into Binance.US and the global Binance crypto exchange, of which Binance.US is a purportedly independent partner. The Voyager deal may violate laws on the unregistered offer and sale of securities, the SEC said in a filing on Wednesday. ![]() The US Securities and Exchange Commission and New York's top financial regulator have opposed crypto exchange Binance.US's US$1 billion deal to buy bankrupt crypto lender Voyager, the latest in a string of US regulatory moves against crypto firms. ![]()
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