HomeCrypto NewsDeaton Suspects That The SEC Will Sue Binance.US

Deaton Suspects That The SEC Will Sue Binance.US


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The SEC filed a limited objection to Binance.US’s acquisition of Voyager assets.

Attorney John Deaton has said he suspects that the US Securities and Exchange Commission will soon launch legal action against the US arm of the world’s largest crypto exchange by trading volume.

Deaton, who represents XRP holders as a friend of the court in the SEC case against Ripple, said this in a tweet today in response to the SEC’s filing of a limited objection to Binance.US’s acquisition of Voyager assets. According to the attorney, it could be a precursor to a lawsuit against the crypto exchange.

“Unfortunately, I suspect this is a sign of a future lawsuit,” Deaton said, quoting a tweet disclosing the development.

Recall that the CryptoLaw founder predicted that the SEC would soon move against a crypto exchange last July. Notably, the attorney reiterated this prediction in a recent Twitter thread as he asserted that the SEC had been emboldened by its victory against LBRY and the FTX collapse.

As highlighted above, the SEC filed a limited objection to Binance.US’s acquisition of Voyager assets yesterday. The regulator expressed dissatisfaction with Binance.US’s disclosure statement per a CoinDesk report raising questions about how the crypto exchange planned to finance the deal valued at $1.02 billion.

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It bears mentioning that, as clarified by The Crypto Basic, citing a Forbes report, Binance.US is only paying $20 million to acquire the customer accounts. Notably, the $1 billion represents the value of the user assets, which Binance will distribute to Voyager customers if the deal pushes through and the court approves the rate at which Voyager should compensate customers.

Binance.US lawyers have agreed to submit a revised disclosure statement before the next hearing. Notably, the court will hold a hearing today where Voyager will request approval to sell its assets.

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Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

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