SEC Intervenes in Binance US Acquisition of Bankrupt Crypto Lender Voyager Digital’s Assets

The U.S. Securities and Exchange Commission (SEC) has intervened in the asset purchase agreement between Binance US and bankrupt crypto lender Voyager Digital. The securities regulator explained that it is “formally investigating whether the debtors and others violated the anti-fraud and other provisions of the federal securities laws.”

SEC Intervenes in Binance-Voyager Asset Purchase Deal

The U.S. Securities and Exchange Commission (SEC) filed a “limited objection” to the asset purchase agreement between bankrupt crypto firm Voyager Digital and the U.S. arm of crypto exchange Binance on Wednesday. The court filing details:

The SEC is formally investigating whether the debtors [Voyager Digital] and others violated the anti-fraud and other provisions of the federal securities laws.

The securities regulator explained that Voyager Digital is seeking “conditional approval of the Disclosure Statement in support of their Chapter 11 plan … and approval of an asset purchase agreement (APA) with BAM Trading Services Inc. d/b/a Binance.US.”

However, the SEC said the Disclosure Statement and the APA fail to include some “necessary information,” such as:

The ability of Binance US to consummate a transaction of this magnitude, which the debtors value at $1.022 billion … [and] the nature of Binance US’s business operations after the acquisition.

The Disclosure Statement and the APA also fail to include sufficient details regarding “how the debtors intend to secure customer assets” during the implementation of the plan and “the rebalancing of the debtors’ cryptocurrency portfolio,” the regulator added.

Crypto exchange Binance announced on Dec. 18 that its U.S. entity has entered into an agreement to acquire Voyager’s assets.

The SEC further noted that its staff has communicated the regulator’s concerns to the debtors’ counsel and has been advised that a revised Disclosure Statement will be filed.

Regarding the Disclosure Statement motion and the APA motion, the court filing concludes:

The SEC requests that the court deny approval of the motions subject to the debtors sufficiently addressing the issues raised above and grant such other and further relief that is just and proper.

What do you think about the SEC intervening in the asset purchase deal between Binance US and bankrupt crypto lender Voyager Digital? Let us know in the comments section below.

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