Before approving the acquisition, the SEC is requesting more information on the $1.022 billion deal between the US arm of Binance and Voyager Digital.
The U.S. Securities and Exchange Commission (SEC) has filed a “limited objection” to Binance.US’ proposed $1 billion acquisition of crypto lender Voyager Digital, citing a lack of “necessary information.” The limited objection was filed on Jan. 4 by the SEC, which noted the lack of details about Binance.US’ ability to finance the acquisition, what the platform’s operations will look like after the deal, and how the client assets will be managed during and after the transaction.
A limited objection is similar to a normal objection, but it applies only to a specific part of the proceedings. In addition, the regulator is demanding that Voyager provide more details about what would happen if the transaction is not completed by April 18.
In its filing, the SEC said it has already communicated its concerns to Voyager and that the lender plans to file a revised disclosure statement before a hearing on the matter.
Some analysts interpreted the objection as the SEC suggesting that Binance.US would not be able to sustain the acquisition without “some ill-timed deal,” such as receiving funds from Binance’s global entity.