The U.S. Securities and Exchange Commission finds Binance.US’s $1 billion deal to buy Voyager Digital insufficient, emphasizing the size of the deal and the unreliability of the origin of Binance.US’s assets.
On January 4, the SEC filed an objection to authorizing entry to Binance.US’ purchase of Voyager Digital, stressing the latter still seeks conditional approval from the regulators, following the bankruptcy proceedings. As per the filing, the SEC is questioning Binance.US’ ability to provide a $1 billion deal:
The ability of Binance US to consummate a transaction of this magnitude, which the Debtors (Voyager Digital) value at $1.022 billion, including the nature of Binance US’s business operations after the acquisition.
Related: Binance conquers Voyager
SEC also stresses, that Voyager has not provided a detailed plan for how the frozen customers’ assets will be protected both by Voyager and during the transition process to Binance.US, or whether a third-party monitor will be engaged.
In addition, SEC asks Voyager for full details on how the cryptocurrency portfolio will be rebalanced and reiterates that all Voyager users’ funds must be returned:
The Debtors set forth general steps that they would take in the event the sales transaction is not consummated by the outside date, including: (i) selling such Cryptocurrency that cannot be distributed to Account Holders, (ii) purchasing Cryptocurrency supported by Voyager’s or Purchaser’s platform that shall be distributed to Account Holders, and (iii) consummating any other transaction, including the execution of trades of Cryptocurrency, necessary or appropriate to effectuate distributions of the Distributable Cryptocurrency to Holders of Allowed Account Holder Claims. But more detail should be provided regarding the implementation of these steps.
Until those details are provided by both parties, the U.S. Securities and Exchange Commission opposes Binance.US’ acquisition of Voyager Digital. The regulators add that they may revise the decision depending on whether or not they agree with the details provided.
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