U.S. SEC Probes Acquisition Deal Over Voyager Digital’s Assets

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The U.S. Securities and Exchange Commission (SEC) has reportedly started to probe the acquisition plan of Binance.US over the assets of the troubled crypto lender, Voyager Digital.

In December 2022, the bankrupt lending firm Voyager Digital agreed to sell its assets to Binance.US, the United States-based subsidiary of the leading cryptocurrency exchange, Binance. The acquisition deal was closed at $1.022 billion.

SEC Scrutinizes Acquisition Deal

The financial agency believes that there is a lack of adequate information regarding the means through which Binance.US will cover “a transaction of this magnitude.” The watchdog added that the crypto exchange has failed to disclose its business operations after news of the intended acquisition.

The SEC argues that the U.S.-based exchange should “file an updated disclosure.”

Meanwhile, a Binance.US spokesperson stated that the exchange welcomes and expects a “diligent review” of the acquisition deal. The spokesperson added that Binance.US will cooperate with the necessary entities to provide any needed information. 

Though the deal’s completion date is yet to be announced, the Binance.US spokesperson iterated that the exchange looks forward to completing its acquisition of Voyager’s assets.

The latest probe by the SEC only emphasizes its efforts to regulate the crypto industry. The scrutiny has increased since the fallout of the once-giant crypto exchange FTX in November 2022, which wiped billions worth of customers’ funds from the market.

How Did Voyager Collapse?

In June 2022, the implosion of the Terra blockchain and its native crypto assets came to light. Crypto hedge fund Three Arrows Capital (3AC) was one of the companies affected by the implosion.

Voyager had $660 million exposure to the troubled hedge fund. Unable to shake off the debt, Voyager struggled with its finances and had to halt withdrawals and file for bankruptcy protection in July.

In October, Voyager agreed to a $1.4 billion assets acquisition deal by FTX.US, the U.S. arm of the collapsed exchange FTX. The deal failed to come to fruition as FTX and its subsidiaries went bankrupt.

As stated earlier, Voyager accepted an acquisition deal with Binance.US to revive its finances.

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