- The SEC has objected to Binance’s proposed takeover of Voyager Digital
- The agency wants evidence of where the $1.02 billion funding is coming from
- Two authorities in Texas have also raised objections to the sale
The US Securities and Exchange Commission (SEC) has raised concerns about Binance.US’s proposed $1.02 billion acquisition of the assets of crypto lender Voyager, which filed for bankruptcy last July. The SEC questioned the transparency of the information provided by Binance.US in its disclosure statement, particularly regarding the exchange’s ability to complete such a large transaction and its plans for securing customer assets and rebalancing its cryptocurrency portfolio. FTX was the initial buyer of Voyager, but that deal was scrapped when FTX imploded.
Binance and FTX Battled Over Voyager Assets
Voyager Digital collapsed into bankruptcy at the height of the crypto contagion fears, having been hugely impacted by the collapse of Three Arrows Capital and Terra USD. FTX US put in a bid for Voyager’s assets a month later and was awarded them in September, but of course this deal was scrapped when FTX folded.
Binance US, which submitted its own rival bid at the time, has now leapfrogged FTX and is in discussions to buy the exchange for a reduced price of $1.02 billion compared to the $1.4 billion that FTX was prepared to pay. However, that deal could be in jeopardy as the SEC has asked for a revised disclosure statement to be filed before the next hearing on the takeover, as it wants to know how Binance US can afford such a deal..
Texas Boards Also Object
The Texas State Securities Board and the Texas Department of Banking has also filed an objection to the sale, claiming that Voyager and Binance.US are not authorized to do business in Texas and objecting to the “disparate treatment provided to creditors in certain states”.
Binance will therefore have to satisfy the SEC and hope that a judge rules in its favor over the Texas authorization issue if it is to see its bid succeed.
