• The SEC opposes Binance.US’ acquisition of Voyager Digital.
• The SEC wants to know how Binance.US can afford the $1 billion acquisition deal.
• The commission also wants to know what steps Voyager will take if the acquisition fails. 
• The agency asked for the submission of a revised disclosure statement before today’s hearing.
• Voyager accepted Binance U.S’s acquisition offer of $1.022 billion on December 19.

The United States Securities and Exchange Commission has objected to Binance.US’s acquisition of embattled crypto lender Voyager Digital. In a bankruptcy court filing on Wednesday, the regulator argued that the U.S. organ of the world’s largest cryptocurrency exchange didn’t reveal important details in its disclosure statement. 

The SEC, in particular, wants to know how Binance.US can afford the $1 billion acquisition deal and how it will operate following the acquisition. Furthermore, the regulator expressed concern about the safety of users’ assets after the deal. The issue comes as an attempt to avoid scenarios similar to the collapse of FTX. 

Also, the commission wants to know what steps Voyager will take if the acquisition does not occur before the deadline. 

The regulatory authority confirmed that these concerns had been shared with the platform. A revised disclosure statement must be submitted to the commission before today’s motion hearing.

There are growing concerns about the business activities of Binance and its U.S. subsidiary. Reuters alleged that Binance U.S is a de facto subsidiary established to dodge sanctions from regulators in the country. Likewise, Reuters revealed that Binance is currently under investigation by the Department of Justice regarding money laundering. 

However, in response to the allegations by Reuters, Binance CEO Changpeng Zhao emphasized the interdependence of Binance U.S. The CEO denied the claims stating that the U.S. subsidiary is independent. In a blog post, the CEO spoke about Binance’s compliance with regulations.

Previous Developments About the Acquisition of Voyager’s Assets

On December 19, Voyager accepted Binance U.S’s $1.022 billion offer to acquire its assets. In a press release, Voyager explained that the bid is the most suitable to revive its dying business.

The recent concerns are now overshadowing the success of the proposed takeover deal of Voyager by Binance. If the deal fails to materialize, it’ll be the second time the cryptocurrency lender will suffer a setback in its bid to return customers’ funds. On September 27, Voyager announced that FTX.US won the auction for its assets.

The defunct cryptocurrency exchange offered $1.4 billion for Voyager’s assets. The deal could have seen the crypto lender allow users to retrieve 72% of their frozen funds, but it failed to materialize.

On the Flipside

• Voyager said in an earlier statement that Binance.US’ bid provides a clear path forward for Voyager customers’ funds to be released as soon as possible. However, if the acquisition does not go through, this will be another setback for Voyager customers.

Why You Should Care

The recent objection to Binance.US’ plans by the SEC is an attempt to avoid a repeat of the FTX crisis following reports of money laundering allegations against Binance.

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