The U.S. Securities and Trade Fee (SEC) is pausing Voyager Digital’s plans to promote its property to Binance.US, in keeping with a court docket submitting dated Jan. 4.
In that restricted objection, the SEC asserted that Voyager has failed to offer sure items of knowledge. Particularly, it mentioned that Voyager has not proven that Binance.US will have the ability to perform a transaction that will probably be bigger than $1 billion.
Moreover, the SEC mentioned that Voyager has not supplied enough element about the way it plans to safe buyer property in opposition to theft or loss. The regulator additionally mentioned that Voyager hasn’t proven the way it may rebalance its crypto portfolio if the sale transaction will not be efficiently accomplished by a sure date.
The SEC mentioned that the problems raised at present have been despatched to Voyagers’s counsel. It additionally mentioned that it has been advised {that a} revised assertion will probably be supplied.
Voyager’s woes
Voyager Digital halted withdrawals and declared chapter throughout the first week of July 2022. It started the method of auctioning its property within the months that adopted. Although FTX was initially named because the profitable bidder in Voyager’s public sale, FTX itself went bankrupt in November, forcing each firms to desert the deal.
Voyager quickly resumed the public sale. Binance.US, one of many prime bidders within the first part, re-entered the public sale and positioned the best bid. On Dec. 19, it was introduced that Binance.US would buy Voyager Digital’s property for $1.022 billion.
The above deal will permit funds to be totally distributed to customers. Although Voyager gained permission to renew sure cash withdrawals in August, it appears that evidently this didn’t embody all person property and that the public sale is important to make customers entire.
