The United States Securities and Exchange Commission (SEC) has filed a limited objection to Binance.US’ proposed $1 billion takeover of Voyager Digital, a bankrupt crypto lender.
In its objection, filed on January 4, the SEC raised concerns about Binance.US’ ability to fund the acquisition, the company’s operations following the deal, and the security of customer assets during and after the transaction.
The SEC also requested more information from Voyager about what would happen if the transaction is not completed by April 18. In response, Voyager has indicated that it will file a revised disclosure statement before a hearing on the matter.
Binance.US’ Relationship with Binance
Some commentators have speculated that the SEC’s objection suggests that Binance.US may not have the financial resources to complete the acquisition without assistance from Binance’s global entity.
Binance CEO Changpeng Zhao (CZ) has previously stated that Binance.US is a fully independent entity, but a Reuters report from October 17 alleged that the US company acts more like a “de facto subsidiary” created to shield Binance from US regulators.
CZ denied these allegations, insisting that Binance is committed to compliance with regulators and that the Reuters article was biased.
Voyager’s Previous Deal with FTX.US
On December 19, Voyager announced that it had accepted Binance.US’ bid to acquire its assets for a total of $1.022 billion. Voyager claimed that this was the “highest and best bid” for its assets and would allow customers and creditors to receive the maximum value on an expedited timeline. In September, Voyager had announced that it had reached a deal with FTX.US worth $1.4 billion, which would have allowed customers to recover 72% of their frozen crypto. However, that deal later fell through.