SEC Raises Questions on Binance’s $1B Acquisition of Voyager Digital

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• The SEC asked questions regarding Binance’s capacity to carry out the proposed $1 billion acquisition of Voyager Digital and the viability of its post-acquisition plans.
• The SEC called into question Binance.US’s capacity to complete the transaction, the need for more information about rebalancing Voyager’s cryptocurrency holdings, and the ability to protect customers‘ assets.
• The SEC reserved the right to modify its objection upon filing new papers and urged the judge to deny the submitted motions unless Binance.US revisions fully address the three key issues.

The Securities and Exchange Commission (SEC) raised questions regarding the proposed $1 billion acquisition of Voyager Digital by Binance.US. In a filing on Jan. 4, the regulator called into question Binance.US’s capacity to complete the transaction, the need for more information about rebalancing Voyager’s cryptocurrency holdings, and the ability to protect customers‘ assets. Voyager Digital, a major casualty of the demise of LUNA, declared Chapter 11 bankruptcy in July 2022. Since then, there have been several high-profile acquisition proposals for the business, with an early offer coming from the now-defunct cryptocurrency exchange FTX.

The SEC stated that it had discussed its concerns with Binance.US counsel and was informed that a revised disclosure statement will be filed before the upcoming motions hearing. In light of this, the SEC further stated that it reserved the right to modify its objection upon filing new papers. Additionally, it urged the judge to deny the submitted motions unless Binance.US revisions fully address the three key issues.

The SEC’s objection raises several questions about the viability of the proposed acquisition of Voyager Digital by Binance.US. The regulator called into question the company’s capacity to complete the transaction, the need for more information about rebalancing Voyager’s cryptocurrency holdings, and the ability to protect customers‘ assets. It is unclear how the SEC’s objection will impact the proposed acquisition, but it does raise the issue of the viability of a large-scale transaction of this nature.

The SEC’s objection is also a reminder to all cryptocurrency companies of the importance of regulatory compliance. The regulator’s filing clearly shows that it is closely monitoring the cryptocurrency industry and that it is willing to take action when it deems necessary. Companies operating in this space must be aware of their obligations to comply with the law and must take the necessary steps to ensure that they are fully compliant.

Overall, the SEC’s objection to Binance.US’s $1 billion acquisition of Voyager Digital is an indication of the regulator’s commitment to ensure a safe and secure environment for cryptocurrency companies and their customers. The regulator’s filing serves as a reminder to all cryptocurrency companies of the importance of regulatory compliance. It is important for all companies operating in this space to be aware of their obligations to comply with the law and take the necessary steps to ensure that they are fully compliant.