Binance.US' proposed $1-billion purchase of beleaguered cryptocurrency platform Voyager Digital Ltd VYGVF is facing a limited objection from the U.S. Securities and Exchange Commission.
What Happened: The SEC said that the Changpeng Zhao-led company’s purchase agreement doesn’t contain details on its ability to close the deal and the regulator sought more information on the company’s business operations, reported Reuters, citing a bankruptcy court filing on Wednesday.
In December, the U.S. Committee on Foreign Investment in the United States said its review could potentially delay or block the deal, according to Reuters.
See Also: How To Buy Cryptocurrencies — A Step-By-Step Guide
Why It Matters: In November, Binance relaunched its bid to acquire the bankrupt Voyager Digital after FTX, a Sam Bankman-Fried-led cryptocurrency trading platform, itself declared insolvency. FTX had earlier positioned itself as a white knight with respect to Voyager.
Voyager had filed for Chapter 11 bankruptcy in July due to its nearly $650 million exposure to defunct cryptocurrency hedge fund Three Arrows Capital.
The unraveling of multiple cryptocurrency platforms led to a severe dent in the prices of major cryptocurrencies like Bitcoin BTC/USD and Ethereum ETH/USD in 2022. Bitcoin lost nearly 60% of its value in the year, while Ethereum declined by almost 67%.
Read Next: $465M Of Robinhood Stock Linked To Sam Bankman-Fried To Be Seized By Justice Department
Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
