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

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.