The United States Securities and Exchange Commission (SEC) has intervened in the asset buyback process operated between Binance.US and Voyager Digital to seek greater clarity on certain points. In particular, the SEC wants to know if the American branch of Binance is able to take on this transaction of more than one billion dollars.
SEC meddling in Binance.US operations
The United States Securities and Exchange Commission (SEC) opposed the acquisition of Voyager Digital by Binance.USthe American branch of Binance, and asks for more transparency regarding certain financial matters.
According to the relatively short and rather concise document on the requirements of the regulator, Binance.US will have to prove its ability to carry out a transaction of this magnitude, which would exceed one billion dollars. In addition, the American exchange platform will also have to clarify the nature of its operations once the acquisition is potentially completed.
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Additionally, the SEC wants Voyager Digital to provide more information as to how it plans to secure its creditors’ assets against theft or loss. The SEC also asked the bankrupt broker to show how it would reorganize its portfolio if the deal did not go through.
In addition, the SEC is also asking Binance.US to clarify its ties with its parent company, especially from a financial point of view. According to some observers, the SEC’s objection is aimed at knowing whether Binance.US will need to receive funds from Binance to complete this acquisition.
Effectively, while Changpeng Zhao had made it known that the American subsidiary of the exchange was completely independenta Reuters report from last October alleged that Binance.US was only there to allow Binance to conduct its operations shielded from US regulators.
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An acquisition that remains quite probable
As a reminder, the acquisition of Voyager Digital by Binance.US would allow the bankrupt company to reimburse its injured customerswhich have been awaiting the return of their assets since the beginning of July.
However, despite the intervention of the SEC, it is likely that the acquisition will take place to the extent where this is only a limited objectionwhich means that the rest of the agreement seems, a priori, to meet the expectations of the regulator.
Finally, according to the document, the SEC had already informed Voyager of its different expectations, so it is likely that the bankrupt broker issue a revised statement in his scheduled hearing today regarding the sale of its assets.
When Voyager Digital announced that it had chosen Binance.US for the acquisition of its assets, the firm specified that this was ” highest and best offer between all those that had been proposed to him, and that the latter would allow “ maximize the value returned to customers and other creditors in an accelerated time frame “.
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Source: SEC filing
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