Cryptocurrency exchange Binance.US's plans to acquire bankrupt crypto lender Voyager Digital (CSE:VYGR, OTCQX:VYGVF)’s assets for US$1bn has been thrown into doubt following an objection from the US Securities and Exchange Commission (SEC).
In a statement filed before the New York Bankruptcy Court, the SEC questioned Binance.US’s ability to consummate the US$1bn transaction while also taking umbrage at “(in)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”.
“The SEC staff has communicated its concerns to debtors’ counsel, and has been advised that a revised disclosure statement will be filed prior to a hearing on the motions,” read the statement.
Binance.US – a separate entity to Caymans-registered Binance, currently the world’s largest cryptocurrency exchange – first signalled its intention to buy bankrupt crypto lender Voyager on 19 December 2022.
FTX initially intended to buy the lender’s assets, before it too filed for bankruptcy following the dramatic downfall of FTX founder and crypto mogul Sam Bankman-Fried.
“A diligent review of the deal is to be expected and welcomed,” Binance.US told Bloomberg. “We will work with the relevant parties to provide any requested information. We look forward to completing the transaction and bringing Voyager customers to Binance.US.”