SEC objects to Binance.US’ purchase of Voyager Digital for $1 billion

SEC objects to Binance.US’ purchase of Voyager Digital for $1 billion

In a Jan. 4 filing, the financial regulator filed a limited objection and a reservation of rights. The SEC is pushing back on Binance's U.S. division's plan to buy bankrupt crypto lender Voyager Digital in a deal worth around $1 billion.

According to the agency, the purchase agreement does not contain sufficient details about Binance's ability to complete the transaction.

It noted that the asset purchase agreement does not contain details about:

“Binance US’s ability to complete a transaction of this magnitude, valuing the Debtors at $1.022 billion, including the nature of Binance US’s post-acquisition operations.”

SEC wants more details on customer refunds

The regulator is also seeking further details on how Voyager Digital (the Debtors) intends to secure customer assets. It would like to receive information about security measures implemented to protect against theft or loss by both the debtors and Binance US after the acquisition of assets.

Further details regarding the rebalancing of Voyager’s cryptocurrency portfolio have also been requested by the SEC. Essentially, it wants to ensure that customer funds are fully refunded before Voyager takes anything from the sales deal.

Details regarding the sale of crypto assets that cannot be distributed to account holders, the purchase of cryptocurrency supported by Voyager or Binance to be distributed to account holders, and the conduct of any other transactions necessary or appropriate to effect distributions to account holders have been requested.

While these concerns appear to be valid, the SEC and Chairman Gary Gensler appear hell-bent on stifling crypto in its entirety rather than working on efforts to heal and move the industry forward.

mid-December,CryptoPotatoreported that Binance US has reached an agreement with Voyager Digital to acquire its assets. In late October, FTX US won a bid to buy out the distressed assets, just weeks before the collapse.

Outlook on the crypto market

Voyager Digital suspended payouts and filed for Chapter 11 bankruptcy in early July. Since then, crypto markets have declined by 10%, or around $100 million.

Today, the total market capitalization is around $854 billion. Markets are up 1.7% in the last 24 hours but remain in a narrow, range-bound channel with extremely low volatility.

Analysts have predicted several more months of this market lethargy.

.