SEC Rejects Binance.US’s Plan To Purchase Voyager Digital

January 5, 2023 11:15 am Comments

The SEC has just filed a “limited objection” to cryptocurrency exchange Binance.US’s purchase of Voyager Digital for $1 billion.

The reason behind the SEC objection is due to an absence of “necessary information”.

Besides filing a limited objection the SEC also asked Voyager to provide more details about what would happen if the transaction was not completed by April 18.

Deeper in the objection filing the SEC stated they had previously communicated their concerns to Voyager, who intends to submit a modified disclosure statement prior to the hearing on the issue.

Coin Desk Shared These Details:

The U.S. Securities and Exchange Commission (SEC) has filed a limited objection to Binance.US’s proposed $1.02 billion purchase of the assets of bankrupt crypto lender Voyager.
In its filing, the SEC questioned the adequacy of the information in Binance.US’s disclosure statement, specifically details on the ability of the crypto exchange to “consummate a transaction of this magnitude,” as well as how Binance.US intends to secure customer assets and details on how Binance.US would rebalance its cryptocurrency portfolio.
The SEC said it has communicated its concerns to Binance.US’s counsel, and has been told that a revised disclosure statement will be filed prior to the next hearing on the motions.

Cointelegraph got the scoop too:

The United States Securities and Exchange Commission (SEC) has filed a “limited objection” to crypto exchange Binance.US’s proposed $1 billion takeover of bankrupt crypto lender Voyager Digital, citing a lack of “necessary information.”

The limited objection was filed on Jan. 4, with the SEC pointing to a lack of detail regarding Binance.US’s ability to fund the acquisition, what Binance.US’s operations would look like following the deal, and how customer assets will be secured during and after the transaction. A limited objection is similar to a normal objection but only applies to a specific part of the proceedings.

Additionally, the regulator also wants Voyager to provide more detail on what would happen should the transaction not be consummated by April 18. In its filing, the SEC said it already communicated its concerns with Voyager and the lender intends to file a revised disclosure statement prior to a hearing on the matter.

Some commentators interpreted the objection as the SEC suggesting Binance.US would not be able to afford the acquisition without “some untoward dealing” such as receiving funds from Binance’s global entity.


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