July 24, 2024
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Binance.US’ Voyager Assets Acquisition hits Roadblock with SEC Interruption

Binance US’ acquisition of the Voyager asset portfolio has been met with a limited objection from the United States Securities and Exchanges Commission (SEC). On December 19, 2022, the bid to acquire the assets of the defunct cryptocurrency platform was won by the American cryptocurrency exchange. Binance.US even agreed to cover Voyager’s costs of up to $15 million in order to win the bid for Voyager’s assets, which came in at an astounding $1.022 billion.

The Securities and Exchange Commission states in the document that it has filed that the disclosure statement does not provide key information about the transaction. The SEC is particularly interested in learning how Binance.US will be able to pay for the acquisition, as well as the nature of the company’s business operations after the purchase. The commission would also like additional information on Voyager’s plans in the event that the acquisition does not take place by the date that has been decided. In addition, the filing stated,

“Sufficient detail regarding how the Debtors intend to secure customer assets, including what if any safeguards will be implemented to protect against theft or loss by both the Debtors, during implementation of the plan process, and Binance US, after its acquisition of assets.”

Additionally, the regulatory authority stated that these concerns were shared with the platform. In addition, before the motion hearing, a revised disclosure statement must be submitted to the commission. The hearing was originally scheduled for January 5, 2023, or tomorrow.

Notably, as part of its bid, the American crypto exchange is required to meet certain conditions. Binance.US must make a good faith deposit of $10 million. The condition also gives Binance until April 18, 2023, with a one-month grace period, to complete the acquisition.

Moreover, this was the second time Voyager had to auction its assets. The first time, FTX had won the bid, pouring in nearly $1.422 billion for Voyager’s assets. This deal, however, went downhill after the crypto exchange itself filed for bankruptcy in November 2023.