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The SEC files an objection to Binance.US’s $1 billion bid to buy Voyager Digital’s assets, as the regulator scrutinizes deal for the bankrupt crypto lender

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  • The SEC wants more information about the $1 billion purchase of busted crypto lender Voyager Digital’s assets by Binance.US. 
  • The SEC filed a limited objection to the bankruptcy court overseeing the potential takeover of the assets by Binance.US. 
  • The regulator questioned the exchange’s ability to “consummate a transaction of this magnitude”.

The Securities and Exchange Commission is seeking more information about the pending purchase of Voyager Digital’s assets by the US arm of crypto exchange Binance, highlighting the regulator’s attention to the crypto space after a number of blow-ups. 

The SEC filed a limited objection to the $1.02 billion deal for Binance.US to take over the assets of the crypto lender, which sought bankruptcy protection last year following “prolonged volatility and contagion” in the crypto markets.

Binance.US’s ability to “consummate a transaction of this magnitude” was questioned by the SEC in its bankruptcy-court filing dated January 4. 

The regulator’s intervention also said there was a lack of sufficient detail about how the exchange plans to safeguard customer assets, and how Binance.US will rebalance its cryptocurrency portfolio. 

“The SEC staff has communicated its concerns to Debtors’ counsel, and has been advised that a revised Disclosure Statement will be filed prior to a hearing on the Motions,” the regulator said in the filing. 

Voyager Digital was slated on Thursday to seek the bankruptcy court’s approval to enter into the asset purchase deal with Binance.US. 

In a separate move, the Texas State Securities Board and the Texas Department of Banking filed an objection to the Voyager Digital asset sale, according to a CoinDesk report. Those regulators claimed Voyager and Binance.US are not in compliance with Texas law and are not authorized to conduct business in the state. 

The crypto industry was rocked by a number of implosions in the space last year, including the bust of algorithmic stablecoin TerraUSD that led to the bankruptcy of crypto hedge fund Three Arrows Capital and eventually the failure of Voyager Digital. As well, the speculator crash of crypto exchange FTX resulted in founder Sam Bankman-Fried facing criminal and civil charges.

Read the original article on Business Insider