SEC objects to Binance.US’s $1b deal to buy Voyager Digital

The Securities and Exchange Commission (SEC) questions Binance’s ability to complete its proposed $1 billion acquisition voyager digital and the feasibility of its post-acquisition plans.

According to the SEC’s objection filed On January 4, the regulator calls into question binance.usAbility to handle transactions up to $1 billion.

Second, the SEC claims insufficient information regarding the company’s strategy for protecting clients’ assets. It is reportedly unclear how Binance.US will protect customers from theft or loss during and after the acquisition.

Third, the regulator is concerned about the need for more information on the rebalancing of Voyager’s cryptocurrency holdings.

Meanwhile, the SEC said that it had discussed its concerns with Binance.US counsel and was informed that an amended disclosure statement would be filed ahead of the upcoming motion hearing.

In light of this, the SEC further stated that it reserves the right to revise its objection upon filing of new papers. Additionally, it urged the judge not to deny the motions presented until The amendments solely address three major issues.

Voyager Digital is battling bankruptcy

one of the major casualties of death LUNA had Voyager Digital declare Chapter 11 bankruptcy in July 2022. Since then, there have been several high-profile acquisition offers for the business, with one initial offer coming from now-defunct cryptocurrency exchange FTX.

Although FTX’s initial offer was dismissed as “not serious”, the exchange later found itself back among potential buyers. FTX and Coinbase are reportedly engaged in intense competition for the assets of the bankrupt company and eventually FTX Predominant,

However, the arrangement she had with Voyager Digital was considered canceled From the collapse of the FTX exchange on November 11 and the subsequent arrest and extradition of its CEO, Sam Bankman-Fried.

On 19 December, Binance.US expressed interest in acquiring Voyager Digital at a bid price of $1.022 billion. Voyager Digital intends to request the bankruptcy court for the sale of its assets during a hearing on January 5th.

In a separate filing, the Texas State Securities Board and the Texas Department of Banking objected For sale because the proposed acquisition of Voyager and Binance.US is not compliant with Texas laws.

Another issue raised in the filing was the “unequal treatment given to creditors in different states.

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