The Securities and Exchange Commission (SEC) has raised concerns about Binance US’s proposed $1bn acquisition of assets belonging to bankrupt cryptocurrency lender, Voyager Digital.
The SEC filed an objection to the deal, stating that there was insufficient information to show how Binance US would “consummate a transaction of this magnitude” and also noting insufficient detail on Binance US’ business operations after the acquisition and how the debtors intended to secure customer assets.
Binance, the world’s largest digital asset exchange, and its global affiliates have come under increased scrutiny from investors and regulators after the collapse of FTX last year consolidated Binance’s leading role in the industry. The collapse of FTX raised concerns about the opaque relationships between linked cryptocurrency entities, leading to increased regulatory scrutiny of the sector.