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