The U.S. Securities and Exchange Commission (SEC) has intervened in an asset purchase agreement between Binance US and bankrupt cryptocurrency lender Voyager Digital. The securities regulator said it was “formally investigating whether debtors and others have violated anti-fraud and other provisions of federal securities laws.”
SEC Intervenes in Binance-Voyager Asset Purchase Transaction
The U.S. Securities and Exchange Commission (SEC) has filed a “limited objection” to an asset purchase agreement between bankrupt cryptocurrency company Voyager Digital and the U.S. division of crypto exchange Binance. Court filing details:
The SEC is formally investigating whether it is a debtor. [Voyager Digital] Some violated anti-fraud and other provisions of federal securities laws.
Securities regulators have granted Voyager Digital “conditional approval of disclosure statements in support of the Chapter 11 plan…and approval of an asset purchase agreement (APA) with BAM Trading Services Inc. d/b/a Binance.US.” I explained that I was looking for
However, the SEC said the disclosure statement and APA did not include “necessary information” such as:
Binance US’ Ability To Complete A Deal Of This Scale With Debtors Valued At $1.022 Billion… [and] the nature of Binance US’s business operations after the acquisition;
The disclosure statement and APA also did not include sufficient detail regarding “how the debtor intends to secure client assets” and “rebalancing the debtor’s cryptocurrency portfolio” during the implementation of the plan. the regulator added.
Cryptocurrency exchange Binance announced On December 18, the company announced that its US entity had entered into an agreement to acquire Voyager’s assets.
The SEC also noted that SEC staff have communicated the regulator’s concerns to the debtor’s attorneys and have been informed that a revised disclosure statement will be filed.
Regarding the disclosure statement motion and the APA motion, the court filings concluded:
The SEC requests that the court deny approval of the motion and grant other fair and appropriate further relief provided the debtor satisfactorily addresses the above issues.
What are your thoughts on the SEC’s intervention in an asset purchase transaction between Binance US and bankrupt crypto lender Voyager Digital? Let us know in the comments section below.
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