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

The U.S. Securities and Exchange Commission (SEC) has intervened within the asset buy settlement between Binance US and bankrupt crypto lender Voyager Digital. The securities regulator defined that it’s “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 buy settlement between bankrupt crypto agency Voyager Digital and the U.S. arm of crypto change Binance on Wednesday. The courtroom submitting particulars:

The SEC is formally investigating whether or not the debtors [Voyager Digital] and others violated the anti-fraud and different provisions of the federal securities legal guidelines.

The securities regulator defined that Voyager Digital is searching for “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 stated the Disclosure Statement and the APA fail to incorporate some “necessary information,” resembling:

The potential of Binance US to consummate a transaction of this magnitude, which the debtors worth at $1.022 billion … [and] the character of Binance US’s enterprise operations after the acquisition.

The Disclosure Statement and the APA additionally fail to incorporate enough particulars relating to “how the debtors intend to secure customer assets” throughout the implementation of the plan and “the rebalancing of the debtors’ cryptocurrency portfolio,” the regulator added.

Crypto change Binance announced on Dec. 18 that its U.S. entity has entered into an settlement to amass Voyager’s belongings.

The SEC additional famous that its employees has communicated the regulator’s issues to the debtors’ counsel and has been suggested {that a} revised Disclosure Statement can be filed.

Regarding the Disclosure Statement movement and the APA movement, the courtroom submitting concludes:

The SEC requests that the courtroom deny approval of the motions topic to the debtors sufficiently addressing the problems raised above and grant such different and additional aid that’s simply and correct.

What do you consider the SEC intervening within the asset buy deal between Binance US and bankrupt crypto lender Voyager Digital? Let us know within the feedback part beneath.