SEC intervenes in Binance US’s acquisition of assets of bankrupt lender Voyager Digital

The securities regulator explained that it “is formally investigating whether the Debtors and others have violated the anti-fraud and other provisions of the federal securities laws.

SEC intervenes in asset purchase agreement between Binance and Voyager.

The U.S. Securities and Exchange Commission (SEC) on Wednesday filed a “limited objection“to the asset purchase agreement between bankrupt crypto-currency company Voyager Digital and the U.S. arm of crypto-currency exchange Binance. Details of the court filing:

The SEC is officially investigating whether the debtors… [Voyager Digital] and others violated anti-fraud and other provisions of the federal securities laws.

The securities regulator explained that Voyager Digital claims “conditional approval of the disclosure statement in support of its Chapter 11 plan … and approval of an asset purchase agreement (APA) with BAM Trading Services Inc. d/b/a Binance.US.“.

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However, the SEC stated that the disclosure statement and the ABS do not include certain “necessary information“, such as:

Binance US’s ability to complete a transaction of this magnitude, which the Debtors estimate at $1.022 billion…. [et] The nature of Binance US’s post-acquisition business operations.

The Disclosure Statement and the APA also fail to provide sufficient detail regarding “How the Debtors intend to secure customer assets“during the implementation of the plan and”rebalancing the debtors’ crypto-currency portfolio.“, the regulator added.

Crypto-currency exchange Binance announced on Dec. 18 that its U.S. entity had entered into an agreement to acquire the assets of Voyager. The SEC also noted that its staff has communicated the regulator’s concerns to the debtors’ lawyers and has been informed that a revised disclosure statement will be filed.

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With respect to the Disclosure Statement Motion and the APA Motion, the Court’s filing concludes:

The SEC requests that the Court deny approval of the motions subject to the Debtors sufficiently addressing the issues raised above and granting such other relief as is just and proper.

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