Binance US' Proposed $1B Voyager Digital Deal Hits SEC Roadblock

Binance.US' proposed $1 billion purchase of embattled cryptocurrency platform Voyager Digital Ltd VYGVF faces limited objection from United States Securities and Exchange Commission.

What Happened: SEC Says Contract to Purchase Changpeng Zhao-Led Company Lacks Details About His Ability to Close the Deal and Regulator requested more information about the company's business operations, Reuters reported, citing a bankruptcy court filing on Wednesday.

In December, the US Committee on Foreign Investment in the United States said its review could potentially delay or block the deal, according to Reuters.

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Why it matters: In November, Binance relaunched its bid to acquire the bankrupt Voyager Digital after FTX, a cryptocurrency trading platform run by Sam Bankman-Fried, failed. itself be declared insolvent. FTX had previously positioned itself as a white knight to Voyager.

Voyager filed for Chapter 11 bankruptcy in July over its nearly $650 million exposure to former cryptocurrency hedge fund Three Arrows Capital.

The breakup of several cryptocurrency platforms led to a sharp drop 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 has fallen almost 67%.

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Disclosure: Jason Raznick, CEO of Benzinga, is a member of the committee of unsecured creditors in the Voyager Digital bankruptcy case.

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