{"id":16114,"date":"2023-01-05T02:40:03","date_gmt":"2023-01-05T02:40:03","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/sec-files-objection-to-binance-uss-plans-to-acquire-voyager-digital\/"},"modified":"2023-01-05T02:40:05","modified_gmt":"2023-01-05T02:40:05","slug":"sec-files-objection-to-binance-uss-plans-to-acquire-voyager-digital","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/sec-files-objection-to-binance-uss-plans-to-acquire-voyager-digital\/","title":{"rendered":"SEC files objection to Binance.US\u2019s plans to acquire Voyager Digital"},"content":{"rendered":"

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The United States Securities and Exchange Commission (SEC) has filed a \u201climited objection\u201d to crypto exchange Binance.US\u2019s proposed $1 billion takeover of bankrupt crypto lender Voyager Digital, citing a lack of \u201cnecessary information.\u201d<\/p>\n

The limited objection was filed on Jan. 4, with the SEC pointing to a lack of detail regarding Binance.US\u2019s ability to fund the acquisition, what Binance.US\u2019s operations would look like following the deal, and how customer assets will be secured during and after the transaction.<\/p>\n

A limited objection is similar to a normal objection but only applies to a specific part of the proceedings.<\/p>\n

Additionally, the regulator also wants Voyager to provide more detail on what would happen should the transaction not be consummated by Apr. 18.<\/p>\n

In its filing, the SEC said it already communicated its concerns with Voyager and the lender intends to file a revised disclosure statement prior to a hearing on the matter. <\/p>\n

Some commentators interpreted the objection as the SEC suggesting Binance.US would not be able to afford the acquisition without \u201csome untoward dealing\u201d such as receiving funds from Binance\u2019s global entity.<\/p>\n

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SEC basically objecting on the grounds that Binance US couldn\u2019t have this size of assets without some untoward dealing (likely with parentco)<\/p>\n

Which would mean a commingling of the US entity. So if Binance fights it they risk US exposure\u2026 https:\/\/t.co\/9wW6eRTol7<\/p>\n

\u2014 Adam Cochran (adamscochran.eth) (@adamscochran) January 4, 2023<\/a><\/p><\/blockquote>\n

While Binance CEO Changpeng Zhao (CZ) has publicly stated that Binance.US was a \u201cfully independent entity,\u201d an Oct. 17 Reuters report alleged that the U.S. entity acts more like a \u201cde facto subsidiary\u201d which was created to \u201cinsulate Binance from U.S. regulators.\u201d <\/p>\n

In response to the allegations, CZ suggested in an Oct. 17 blog that Binance was committed to complying with regulators, that the author of the article was reporting in a biased manner and had used a presentation provided by an external consultant which was never implemented as evidence for these claims.<\/p>\n

Related: <\/strong>\u2018Binance is the crypto market:\u2019 Arcane crowns the exchange 2022\u2019s winner<\/em><\/strong><\/p>\n

Voyager announced on Dec. 19 that it had agreed to Binance.US\u2019s bid to acquire its assets, in a deal worth $1.022 billion in total.<\/p>\n

The lender noted in a press release that the bid was the \u201chighest and best bid for its assets,\u201d which would maximize the value returned to customers and creditors \u201con an expedited timeframe.\u201d<\/p>\n

Voyager previously announced on Sep. 27 that FTX.US had won the auction for its assets with an offer of $1.4 billion which would have seen customers recover 72% of their frozen crypto, in a deal that has since fallen through.<\/p>\n<\/div>\n