SEC Demands Full Disclosure
The U.S. Securities and Exchange Commission (SEC) has filed a partial objection to the acquisition of the assets of cryptocurrency investment platform Voyager Digital by Binance US, the U.S. arm of cryptocurrency exchange Binance.
Binance US has failed to disclose the necessary information.
Last December, Binance US won the assets of Voyager, which filed for bankruptcy in Chapter Eleven, for about 140 billion yen ($1.02 billion). The SEC needs to clarify whether Binance has the ability to complete a transaction of this size.
It also noted that the current documents do not provide sufficient detail on how to protect client assets or how to reallocate cryptocurrency portfolios.
The SEC also said it had already communicated these concerns to Binance US’s attorneys, and received a response from Binance US that they would provide an amended disclosure document before the next public hearing.
Voyager plans to seek approval of the asset sale from the bankruptcy court at a hearing today.
Binance US CEO Brian Shroder said in a statement regarding Voyager’s successful bid, “Binance US has more assets than liabilities and is well funded.”
Voyager users will also be able to receive a refund of their funds from the Binance US platform once the sale process is complete.
association: Binance US bids for assets of bankrupt Voyager for 140 billion yen
Chapter 11 of the U.S. Bankruptcy Code (Chapter 11)
A reconstruction-type bankruptcy legal system similar to the Civil Rehabilitation Law of Japan. While continuing management, we will reduce debts and restructure the company. Debt collection will be suspended after the application, and the debtor will work on debt consolidation and formulate a reconstruction plan within 120 days in principle.
Alameda Research also objects to acquisition
On the 4th, Alameda Research, a FTX Group company, also filed papers in bankruptcy court challenging Binance’s acquisition of Voyager assets for reasons separate from the SEC.
The law firm Sullivan & Cromwell, representing FTX Group, filed the documents, claiming Alameda Research is a “substantial shareholder” of Voyager.
Alameda Research pointed out that it provided a rescue loan to Voyager in June 2022, less than two weeks before Voyager filed for bankruptcy. It is a form of claiming that there is.
Alameda Research provided Voyager with stablecoin (USDC) worth about 27 billion yen ($200 million) and 15,000 bitcoins (BTC), but at the time of Voyager’s bankruptcy, there was still about 10 billion yen. ($75 million) worth of stablecoins were not repaid to Alameda Research.
associationVoyager, a cryptocurrency investment app, secures a bridge loan from Alameda
The complaint alleges that Voyager disregarded basic requirements of bankruptcy law in its contract with Binance, particularly in dealing with claims Alameda Research has against Voyager.
State authorities and trustee offices also oppose
Binance US’s acquisition of Voyager is being opposed by the SEC, Alameda Research, as well as securities and banking regulators in Texas, New Jersey, Vermont and New York. State officials cited Voyager and Binance US’s failure to comply with state laws and other reasons.
The U.S. Department of Justice’s U.S. Trustee’s Office also objected, stating that “the court decided against the purchase agreement without evidence of adequate due diligence and without an opportunity for fair deliberation by interested parties.” should not be approved.