Is the SEC going to sue Binance in the future?

Paigambar Mohan Raj
Source: Coincu News

Attorney John Deaton took to Twitter and said that the SEC (Securities and Exchange Commission) might sue the U.S. branch of Binance in the future. Deaton bases his belief on the SEC’s limited objection to the Binance-Voyager deal. Deaton is a critical source in the ongoing SEC vs. Ripple lawsuit. The attorney represents XRP holders in the lawsuit as amicus curiae (friend of the court).

Additionally, in a separate filing, the Texas State Securities Board and the Texas Department of Banking objected to the sale. They cited grounds that Voyager and Binance.US are “not in compliance with Texas law and are not authorized to conduct business in Texas.”

What happened in the Binance-Voyager deal?

The SEC objected to Binance.US’s proposal to buy the insolvent crypto lender Voyager Digital for $1 billion. The regulator drew attention to the disclosure statement from the exchange that allegedly omitted crucial information.

According to the filing, the acquisition agreement lacked information about the ability of the crypto exchange to finalize the sale. The SEC sought further specifics about the nature of the company’s business activities going forward.

It should be noted that Binance.US is paying only $20 million for the user accounts. The $1 billion is for the assets of the users. These assets will be distributed to their owners if the deal goes through. However, the court needs to approve the rate that Voyager should compensate customers.

The DoJ (Department of Justice) has been looking into Binance since 2018. But, according to a Reuters report, internal disputes are holding up the investigation’s completion.

However, in June of last year, in response to floating rumors, Binance CEO Changpeng Zhao said that the SEC was “asking questions” about the BNB exchange token, and the firm was not subpoenaed. Moreover, at CoinDesk’s Consensus 2022, Zhao informed the audience that the SEC frequently inquires about Binance and its offerings and that the exchange maintains ongoing communication with law enforcement.