United States authorities have submitted a “limited objection” to Binance.US as it plans to buy out bankrupt crypto lending firm Voyager Digital, documents revealed on Wednesday.
The US Securities and Exchange Commission (SEC) filed a limited objection to the $1 billion USD buyout over an alleged lack of “necessary information.”
It also accuses Binance.US of failing to demonstrate its capability to finance the takeover, post-acquisition operations, or the security of acquired customer assets.
The SEC added it had communicated with Voyager over the matter. Additionally, it urged Voyager to provide further information on the potential results of the deal, should it fail to take place on 18 April.
A limited objection is similar to a normal objection but only applies to a specific part of the proceedings.
Speculators have said the SEC objection indicates the regulatory body may force Binance’s global operations to pay fees for the acquisition.
In its filing, the SEC said it already communicated its concerns with Voyager and the lender intends to file a revised disclosure statement prior to a hearing on the matter.
Tit-for-Tat on a Takeover
The news comes after Reuters reported in October that Binance.US conducted its business as a “de facto subsidiary” to “insulate finance from [US] regulators.” Binance chief executive Changpeng Zhao (CZ) has reaffirmed Binance.US continues to operate independently of its parent firm.
The crypto giant has since hit back at detractors in a recent blog post. The company emphatically denied accusations directed towards its operations and provided a seven-point rebuttal to critics.
According to a 19 December statement, Binance and the crypto lending company agreed to a deal totalling $1.022 billion in assets.
The statement read,
“The Binance.US bid, which sets a clear path forward for Voyager customer funds to be unlocked as soon as possible, […] is comprised of (i) the fair market value of Voyager’s cryptocurrency portfolio at a to-be-determined date in the future, which at current market prices is estimated to be $1.002 billion, plus (ii) additional consideration equal to $20 million of incremental value.”
The press release added that Binance.US aimed to “return crypto to customers in kind” while following “court-approved disbursements and platform capabilities.”
Its US operations also vowed to “immediately move to return value to customers” should the deal fail to close by 18 April this year, pending a one-month extension.
