Binance.US Bid for Voyager Digital Assets Halted by SEC Request

• The SEC has objected to Binance.US’s attempt to purchase assets from the bankrupt crypto lender Voyager Digital.
• The SEC has requested more information about the deal and the planned business operations after Voyager assets are taken over.
• The purchase price is $20 million, including reimbursements to Voyager’s customers.

The U.S. Securities and Exchange Commission (SEC) is seeking more information about a deal between the American franchise of cryptocurrency trading platform Binance and the bankrupt crypto lender Voyager Digital. On Wednesday, the SEC filed a “limited objection” in a court filing, stating that Binance.US had not provided sufficient details about its ability to close the deal.

The proposed purchase of Voyager Digital’s distressed assets was announced by Binance.US in December 2020, with the purchase price valued at approximately $1 billion. The agreement stated that Binance.US would make a deposit of $10 million, and reimburse Voyager for certain expenses up to $15 million. This brings the total purchase price to $20 million, with the added reimbursements to Voyager’s customers.

When the news of Binance.US’s highest bid was announced, Binance.US CEO Brian Shroder stated that, “once the deal is completed, Voyager users will finally be able to access their digital assets on the Binance.US platform.” The SEC’s objection to the deal includes a request for more information about the company’s ability to close the deal, as well as more information about the planned business operations after Voyager’s assets have been taken over.

In response to the SEC’s objection, a Binance.US spokesperson stated, “A diligent review of the deal is to be expected and welcomed. We will work with the relevant parties to provide any requested information. We look forward to completing the transaction.”

The SEC’s objection comes at a time when the agency is stepping up its regulation of cryptocurrency exchanges, with the aim of protecting investors. It also highlights the importance of transparency in the cryptocurrency industry, as the SEC’s objection is based on a lack of sufficient detail about the deal. It remains to be seen whether Binance.US will be able to provide the necessary information to the SEC in order to complete the deal.