The United States Securities and Exchange Commission (SEC) has raised concerns about Binance’s proposed $1 billion acquisition of Voyager Digital, a crypto lender. The SEC has filed a “limited objection” to the deal, stating that there is a lack of information regarding:
- Binance’s ability to fund the acquisition
- How Binance’s operations will look following the deal
- How customer assets will be secured during and after the transaction
Additionally, the regulator has requested more detail on what would happen if the transaction is not completed by April 18. The SEC has communicated its concerns to Voyager, and the lender plans to file a revised disclosure statement prior to a hearing on the matter.
Some experts believe that the SEC’s objections suggest that Binance may not be able to afford the acquisition without “untoward dealing,” such as receiving funds from Binance’s global entity.
Binance’s US arm, Binance.US, has faced criticism over its plans to acquire Voyager Digital for $1.022 billion. Some reports have suggested that Binance.US was created as a “de facto subsidiary” to “insulate Binance from US regulators.”
Binance CEO Changpeng Zhao has denied these allegations, saying that Binance is committed to complying with regulators and that the reports were biased.
Voyager accepted Binance.US’s bid, which it said was the “highest and best” and would maximize value for customers and creditors on an “expedited timeframe.”
Previously, Voyager had agreed to a $1.4 billion offer from FTX.US that would have allowed customers to recover 72% of their frozen crypto assets, but this deal fell through.