SEC Files Limited Objection to Binance.US’ $1B Deal for Voyager Assets

The agency is asking for more details how the crypto exchange can afford such a large deal.

AccessTimeIconJan 4, 2023 at 8:51 p.m. UTC
Updated Jan 9, 2023 at 9:27 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The U.S. Securities and Exchange Commission (SEC) has filed a limited objection to Binance.US' proposed $1.02 billion purchase of the assets of bankrupt crypto lender Voyager Digital.

In its filing, the SEC questioned the adequacy of the information in Binance.US’ disclosure statement, specifically details on the ability of the crypto exchange to “consummate a transaction of this magnitude,” as well as how Binance.US intends to secure customer assets and details on how Binance.US would rebalance its cryptocurrency portfolio.

The SEC said it has communicated its concerns to Binance.US’ counsel, and has been told that a revised disclosure statement will be filed prior to the next hearing on the motions.

Voyager plans to seek the approval of the bankruptcy court for the sales of its assets at a hearing on Jan. 5.

Separately, the Texas State Securities Board and the Texas Department of Banking filed an objection to the sale because they claim Voyager and Binance.US are “not in compliance with Texas law and are not authorized to conduct business in Texas.”

They further object to the “disparate treatment provided to creditors in certain states.”

The $1.02 billion bid represents the fair market value of Voyager's cryptocurrency portfolio, which has a current market value of around $1.002 billion, and an additional consideration of $20 million in incremental value.

Voyager, which went into bankruptcy earlier this year, had initially agreed to sell its assets to the now-defunct crypto exchange FTX, with FTX beating out rivals Wave Financial and Binance for the assets.

UPDATE (Jan. 4, 21:02 UTC): Added additional background.

UPDATE (Jan. 4, 21:23 UTC): Added objections from the Texas State Securities Board and the Texas Department of Banking.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Nelson Wang

Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.