SEC objects to Binance bid for Voyager Digital

Regulators are not convinced the exchange has the capacity to successfully complete an acquisition of this scale.

The US Securities and Exchange Commission (SEC) has filed an objection to Binance US’ intended $1bn acquisition of assets belonging to defunct crypto lender Voyager Digital.

Voyager Digital declared bankruptcy in July, following a crypto crash which prompted several big names in the space to collapse in quick succession.

SEC expressed a concern that Binance has not provided any evidence to support that it can “consummate a transaction of this magnitude”.

The regulator called on Binance US’ legal team to file an updated disclosure explaining in more detail how the exchange would structure its US business after the acquisition and how the debtors would secure customer assets.

Binance classes its US business as an affiliate which licences its exchange technology but is essentially an independent business from the rest of its global operations.

A Binance US spokesperson said a “diligent review of the deal is to be expected and welcomed”, and that Binance US will work with the relevant parties to provide any requested information. “We look forward to completing the transaction”, the statement concluded.

Though Binance, the world’s biggest crypto exchange, has been under regulatory scrutiny for many years in several jurisdictions, this scrutiny has intensified since the collapse of FTX in November.

In September FTX won a $1.4bn the bid for Voyagers assets, as it set about attempting to hoover up any value left after the collapse of a number of crypto lenders and exchanges.

Just weeks later, FTX itself was the subject of a rescue bid by Binance, which the latter walked away from after discovering dodgy accounting practices. FTX itself collapsed, leaving CEO Sam Bankman-Fried facing high-profile criminal and regulatory investigations.

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Written by Hannah

Hannah is editor of and has almost 15 years experience in journalism, including reporting on law, TV, gambling, crypto and alternative finance. She is particularly interested in the future of money, the transition of gambling from 'vice' industry to mainstream entertainment and the application of blockchain technology to wider society.

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