The US Securities and Exchange Commission (SEC) has filed a limited appeal against Binance.US’ proposed $1 billion (about Rs.8,250 billion) acquisition of bankrupt cryptocurrency lender Voyager Digital, according to a bankruptcy court filing on Wednesday . The regulator noted the failure to include necessary information in the Binance.US disclosure statement.
The purchase agreement lacks details crypto Exchange’s ability to complete the deal and has asked for more information about the nature of the company’s business after the deal, according to the filing.
lawyers for Traveller and Binance.US did not immediately respond to requests for comment.
Last month, the US Committee on Foreign Investments in the United States (CFIUS) said its review could delay or block the deal.
Binance has been the subject of a money laundering investigation by US prosecutors. Palo Alto, California-based Binance.US has said its separate American exchange is “completely independent” from the main platform, Binance.
Towards the end of December, Binance listed a large number of withdrawals after the collapse of FTX Crypto exchange that succumbed to a liquidity crisis. At the time, CEO Changpeng Zhao described this as “normal market behavior” when trying to reassure crypto investors.
Between 2021 and 2022, the entire crypto sector lost over US$2 trillion (approximately Rs.1.65.74.7 billion). The Russia-Ukraine war, the post-COVID-19 recession, repeated hacking attacks, and the collapse of promising crypto projects like LUNA and FTX have greatly reduced investors’ exposure to the sector.
Amid market stress, companies like CryptoCom and Binance and a host of others resorted to cutting their respective workforces, while firms like BlockFi, Celsius and Voyager Digital filed for bankruptcy.
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