The U.S. Securities and Exchange Commission (SEC) has opposed Binance’s U.S. affiliate’s proposed $1 billion acquisition of the assets of bankrupt cryptocurrency lender Voyager Digital.
In a court filing Wednesday, the SEC filed a “limited objection” to the deal, saying Binance.US failed to include the necessary information in its disclosure statement.
The SEC said the acquisition agreement did not detail Binance.US’ ability to complete the deal, and requested more information on the nature of its business operations after the deal closes.
A spokesperson for California-based Binance.US said: “We look forward to and welcome a careful review of this transaction. We will work with interested parties to provide any requested information. We look forward to closing the transaction.”
The SEC's objection is the latest hurdle to the Binance.US-Voyager deal and a further sign of regulatory scrutiny of the world's largest cryptocurrency exchange, Binance, and its affiliates.
The Committee on Foreign Investment in the United States, which reviews foreign investment in U.S. companies for national security risks, said last month it was reviewing a planned acquisition, potentially delaying or blocking it.
Binance founder and CEO Changpeng Zhao, a Canadian citizen born in China, said Binance.US is a “completely separate entity.” However, Reuters reported in October that Zhao took control of Binance.US, directing its management from abroad.
Binance, which controls more than half of the world's cryptocurrency exchanges but has declined to reveal where its headquarters are located, is under investigation by the U.S. Department of Justice for possible money laundering and sanctions violations. Reuters reported last month that some prosecutors believe they have gathered enough evidence to indict Binance and executives, including Zhao.
Asked to comment about the investigation, Binance said in December: "We don't have any insight into the inner workings of the US Justice Department, nor would it be appropriate for us to comment if we did."
Voyager filed for bankruptcy in July after the collapse of two major coins sent shockwaves through the crypto industry.
It originally planned to sell its assets to cryptocurrency exchange FTX, but that deal fell apart when FTX went bankrupt in November. FTX founder Sam Bankman-Fried was arrested last month on criminal fraud charges.
