On Jan. 5, the U.S. Securities and Exchange Commission (SEC) filed a limited objection to Binance.US’ proposal to acquire the assets of bankrupt cryptocurrency lender Voyager for $1.02 billion.
In the filing, the SEC questioned the adequacy of the information in Binance.US’ disclosure statement, specifically details about the cryptocurrency exchange’s ability to “consummate transactions of this size” and how Binance.US intends to protect customer assets , details on how to rebalance its cryptocurrency portfolio.
The SEC said it communicated its concerns to lawyers for Binance.US, who were told it would file a revised disclosure statement ahead of the next motions hearing.
Cryptocurrency lending platform VoyagerDigital is headquartered in New York, with a valuation of about $4 billion in mid-2021. But the agency was implicated in the Three Arrows Capital (Three Arrows Capital) thunderstorm in June 2022, when Voyager Digital announced that Three Arrows Capital had outstanding loans totaling $666 million. It is reported that the loan consists of USDC worth approximately US$350 million and more than 15,000 bitcoins. Subsequently, VoyagerDigital, which suffered a devastating blow, announced the start of reorganization in New York, where its headquarters are located, and sought recognition of the bankruptcy case in Canada, where it was listed. Voyager mentioned in its bankruptcy protection filing on July 5 last year that it estimated there were more than 100,000 creditors and about $1 billion to $10 billion in assets, as well as liabilities of the same value.
After Voyager filed for bankruptcy, other encryption institutions began to seek to acquire Voyager’s assets and liabilities, among which the two largest intended acquirers were FTX and Binance.US. After several rounds of fierce bidding that lasted for two weeks, FTX.US finally won the qualification to acquire VoyagerDigital assets with the highest bid of approximately US$1.422 billion. FTX’s founder SBF is also regarded as a “white knight”.
Unexpectedly, FTX itself collapsed in November last year, and the Voyager acquisition had to be restarted again.
On Dec. 19, Binance.US announced it had acquired the rights to the top bid of $1.022 billion, which included the fair market value of Voyager’s cryptocurrency portfolio at a to-be-determined date in the future. At current market prices, it is estimated at US$1.002 billion, plus additional consideration equivalent to an incremental value of US$20 million. Meanwhile, Voyager’s claims on Three Arrows Capital remain in the estate, and any future recovery of these and other undischarged claims will be distributed to creditors of the estate. The Binance.US bid is aimed at returning cryptocurrencies in kind to customers based on court-approved payments and platform capabilities.
But U.S. regulators have begun to intervene in the acquisition. They have expressed their attention to the acquisition of BinanceUS, and even the Texas Securities Commission and the Texas Department of Banking have raised objections to the sale. They claim that Voyager and Binance.US do not comply with Texas law and are not authorized to do business in Texas.
This article is from ” Interface News “, author: Si Linwei, 36 Krypton is authorized to publish.
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related events
- Binance US acquisition of Voyager, an encrypted lending institution, was blocked and questioned for insufficient information disclosure2023-01-05
- Binance to acquire assets of cryptocurrency lending platform Voyager for $ 1.022 billion2022-12-21
- Monetary Authority of Singapore considers prohibiting retail investors from participating in cryptocurrency transactions2022-07-04
- Tencent adds to Philippine electronic payment platform PayMaya 2020-04-08
- Tencent and KKR jointly invest in Philippine fintech company Voyager 2018-10-04
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