US SEC Files a Limited Objection Against Binance.US
The US SEC has filed a limited objection against Binance.US' proposed $1 billion buyout of Voyager Digital.
The regulator wants Voyager to submit information about what would happen if the deal was not finalized.
The US SEC has filed a limited objection against Binance.
US' proposed $1 billion buyout of bankrupt crypto lender Voyager Digital, alleging a lack of necessary information.
On January 04, the SEC filed the limited objection, citing a lack of information regarding Binance.US's ability to fund the acquisition. The SEC wants to know how Binance.US' operations will look after the deal, as well as how customer assets will be protected during and after the transaction.
A limited objection is similar to a normal objection, but it only applies to a certain part of the proceedings.
Furthermore, the regulator wants Voyager to submit further information about what would happen if the deal was not finalized by April 18.
The SEC stated in its filing that it has previously addressed its concerns to Voyager, and that the lender plans to file a revised disclosure statement prior to a hearing on the matter.
Some critics read the issue as the SEC implying that Binance.US would not be able to afford the acquisition without some illicit conduct, such as obtaining funds from Binance's global entity.
While Binance CEO Changpeng Zhao (CZ) has publicly asserted that Binance.US is a fully independent entity. A Reuters report published on October 17 alleges that the US entity functions more like a "de facto subsidiary" meant to shield Binance from US regulations.
In response, CZ asserted in an Oct. 17 blog post that Binance was committed to regulatory compliance, that the author of the piece was biased, and that the information supplied by an external consultant was never executed.
On December 19, Voyager stated that it has agreed to Binance.US’s bid to acquire its assets in a $1.022 billion deal.
In a press release, the lender stated that the deal was the "highest and best bid for its assets," maximizing the value delivered to customers and creditors "on an expedited timescale."
On September 27, Voyager reported that FTX.US had won the auction for its assets with a $1.4 billion bid, which would have allowed users to reclaim 72% of their frozen crypto, a deal that has since fallen through.
