Because of a lack of “necessary information,” the United States Securities and Exchange Commission (SEC) has filed a “limited objection” to cryptocurrency exchange Binance.proposed US's $1 billion acquisition of insolvent cryptocurrency lender Voyager Digital.
On January 4, the SEC submitted a limited objection, citing a lack of information on Binance.ability US's to finance the purchase, how Binance.US would operate after the agreement, and also how customer funds would be protected both during and after the purchase. Similar to a regular object, a limited denial solely pertains to a certain aspect of the procedures.
The watchdog also requests more information from Voyager regarding what would occur if the transaction was not completed by April 18.
The lender wants to provide a modified disclosure form before a conference on the topic, according to the SEC's filing, which said that it has previously discussed its concerns with Voyager.
Some commenters read the SEC's objection as an intimation that Binance.US wouldn't be able to finance the acquisition without engaging in “some improper dealing,” like borrowing money from Binance's international entity.
Although the CEO of Binance, Changpeng Zhao (CZ), has claimed that Binance.US is a “totally autonomous organization,” a Reuters story dated October 17 said that the U.S. entity actually functions more like a “de facto subsidiary” that was established to “insulate Binance from U.S. regulators.”
In response to the accusations, CZ wrote in a blog post on October 17 that Binance was dedicated to following regulations, that the author of the article was prejudiced, and that the author had used a slideshow created by an outside expert that was never utilized as support for these accusations.
On December 19, Voyager revealed it had accepted Binance.offer US's to buy its properties in a deal with a total value of $1.022 billion.
The lender stated in a press statement that the offer was the “highest and best bid for its assets,” resulting in “expedited time frame” and the greatest value being restored to clients and debtors.
In a transaction that has now gone through, Voyager earlier claimed on September 27 that FTX.US had secured the auction for its properties with an offer of $1.4 billion, that would have allowed consumers to retrieve 72% of their frozen cryptocurrency.
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