SEC Objects Binance.US Plans to Takeover Voyager Digital
SEC submitted a limited objection to the acquisition of Voyager Digital by Binance US for $1.022 billion. The US securities watchdog disclosed that the proposed takeover lacked critical information.
Limited Objection to Voyager Acquisition
Explaining the limited objection submitted on January 4, the Securities and Exchange Commission (SEC) indicated the deal overlooked details of Binance’s capacity to fund the takeover.
SEC observed the parties needed to demonstrate the status of Binance.US’s operations posts the acquisition of a bankrupt crypto lender. Also, the agreement required to show how the parties would secure customer assets during and post transaction.
The limited objection directs Voyager to demonstrate the possible events if the April 18 deadline lapses before the $1.022 billion transaction consummation. The SEC confirmed conveying its concerns to Voyager Digital, prompting the lender to commit to filing revised disclosures before the determination of the takeover proceedings.
Is Binance US Unable to Fund Acquisition?
The limited objection prompted speculations that the SEC is suggesting Binance.US cannot afford the acquisition. The commentators have alluded to reliance on untoward dealing where Binance international would fund the purchase. The objection means the uncertainty of Binance US possessing assets of such magnitude to acquire Voyager Digital assets without the parent company’s involvement.
Advancing injections to the US entity would imply commingling with an autonomously operating firm. Such possibilities contradict Binance’s chief executive’s statement that Binance US operated as a fully autonomous entity.
Nonetheless, a Reuters report on October 17 portrayed the US entity as a de facto subsidiary established with intentions to insulate the Binance global operations from Us regulators.
Voyager Acquisition Deals
Binance’s chief executive Changpeng Zhao dismissed the October 17 by alleging bias in the author. He added that the author relied upon a presentation published by an external consultant that failed to substantiate the claims.
Voyager clarified that the $1.022 billion takeovers offered the best deal for the assets. The lender’s update on December 19 indicated the agreement would maximize value for creditors and customers.
Nevertheless, the amount is lower than the September 27 $1.4 billion bid rate submitted by FTX.US. The deal proposed a 72% refund of the trapped crypto following the FTX catastrophic downfall.
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