SEC Claims to Binance
2023.01.05 00:17
SEC Claims to Binance
Budrigannews.com – The cryptocurrency exchange Binance has received a “limited objection” from the Securities and Exchange Commission (SEC) of the United States. citing a lack of “necessary information,” the US proposed taking over Voyager Digital, a failing crypto lender, for $1 billion.
On January 4, the limited objection was filed, and the SEC cited a lack of information regarding Binance. compared to Binance, the US’s capacity to fund the acquisition. After the deal, US’s operations would look like, and customer assets will be protected during and after the transaction.
Similar to a normal objection, a limited objection only applies to a portion of the proceedings.
In addition, the regulator requires Voyager to provide additional information regarding the consequences if the transaction is not completed by April 18.
The lender stated in its filing that it plans to submit a revised disclosure statement prior to a hearing on the matter and that the SEC has already communicated its concerns to Voyager.
The objection was interpreted by some commentators as the SEC recommending Binance. Without “some untoward dealing,” such as receiving funds from Binance’s global entity, the US would be unable to afford the acquisition.
SEC basically objecting on the grounds that Binance US couldn’t have this size of assets without some untoward dealing (likely with parentco)
Which would mean a commingling of the US entity. So if Binance fights it they risk US exposure… https://t.co/9wW6eRTol7
— Adam Cochran (adamscochran.eth) (@adamscochran) January 4, 2023
Despite the fact that Binance CEO Changpeng Zhao (CZ) has publicly stated that Although the US was a “fully independent entity,” a report published on Oct. 17 by Reuters claimed that the U.S. entity behaves more like a “de facto subsidiary” that was established to “insulate Binance from U.S. regulators.”
In response to the allegations, CZ wrote in a blog post on Oct. 17 that Binance was committed to complying with regulators, that the article’s author had used a presentation from an external consultant that was never implemented as evidence, and that the author had reported in a biased manner.
On December 19, Voyager made the agreement with Binance public. The United States’ attempt to acquire its assets in a deal valued at $1.022 billion.
In a press release, the lender said that the offer was the “highest and best bid for its assets” and that it would return the most money to customers and creditors “in an expedited timeframe.”
On September 27, Voyager announced that FTX.US had won the auction for its assets with an offer of $1.4 billion, which would have allowed customers to recover 72% of their frozen cryptocurrency. However, the deal has since collapsed.
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