3 months ago 1 min read

The SEC blocks Binance.$1 US's billion deal with Voyager


The U.S. has only raised a few issues with the $1.022 billion agreement that Binance.US wants to make to buy the assets of the insolvent crypto lender Voyager. Commission for Securities and Exchange (SEC).

The SEC cited a lack of information regarding Binance.ability US's to finance the acquisition, the nature of the operations following the deal, and the security measures to be taken to protect customer assets both during and after the transaction in its limited objection, which was submitted on January 4.

The SEC cited several factual gaps in its filing, including the capacity of the cryptocurrency exchange to complete a transaction of this size, how Binance.US anticipates to secure customer cash, and specifics on how Binance.US would rebalance its bitcoin holdings.

The government also asks Voyager to provide more details about what would happen if the transaction did not conclude by April 18.

According to the SEC's filing, it has already discussed its concerns with Voyager and the lender wants to present a revised disclosure statement before a hearing on the subject.

Separately objecting to the offer on the grounds that Voyager and Binance.US are not in compliance with Texas law and are not permitted to conduct business in Texas, the Texas State Securities Board and the Texas Department of Banking. They also have a problem with the different ways that different states treat debtors.

Critics claim that the SEC's worry signaled that Binance.US would need to conduct some questionable business to finance the acquisition, such as obtaining money from Binance's global network.

Voyager had initially agreed to sell its assets to the now-defunct cryptocurrency exchange FTX before filing for bankruptcy earlier this year. FTX had defeated rivals Wave Financial and Binance to win the right to buy the assets.

Voyager disclosed on December 19 that it had accepted Binance.offer US's to purchase its assets in a $1.022 billion deal.

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