U.S Regulator Objects Binance’s $1B Acquisition of Voyager Assets- Here’s Why

Estimated read time 2 min read
  • The U.S. Securities and Exchange Commission (SEC) is pausing Voyager Digital’s plans to sell its assets to Binance.
  • Voyager Digital halted withdrawals and declared bankruptcy during the first week of July 2022.

The U.S. Securities and Exchange Commission (SEC) has halted Binance’s acquisition of Voyager Digital, a bankrupt crypto lender. The SEC filed a limited objection to the deal, citing concerns about Binance’s ability to make payments of such magnitude and how it will rebalance its cryptocurrency portfolio and secure customer assets.

The SEC also noted that Binance is not registered with the SEC as a securities exchange, and that the deal could violate securities laws. Binance has said that it is working with the SEC to address its concerns and that it remains committed to acquiring Voyager.

The deal between Binance and Voyager was announced in December 2022. Under the terms of the deal, Binance would acquire Voyager’s assets for $1.02 billion. The deal was expected to close in the first quarter of 2023.

Voyager filed for bankruptcy in July 2022 after it was unable to meet its obligations to creditors. The company cited prolonged market volatility and the collapse of Three Arrows Capital (3AC) as factors that contributed to its bankruptcy.

The SEC’s objection to the Binance-Voyager deal is a significant setback for Binance. The deal would have given Binance a major foothold in the U.S. crypto market. It is unclear whether Binance will be able to address the SEC’s concerns and close the deal.

The SEC’s objection is also a sign of the growing scrutiny that Binance is facing from regulators around the world. Binance has been accused of operating illegally in several jurisdictions. The company is also facing an investigation by the Commodity Futures Trading Commission (CFTC) for possible market manipulation.

The SEC’s objection to the Binance-Voyager deal is a reminder that the crypto industry is still in its early stages of development. Regulators are still trying to figure out how to best regulate this new and rapidly evolving market. This uncertainty is likely to continue to be a challenge for crypto companies like Binance

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