The United States Securities and Exchange Commission (SEC) suspends Voyager Digital’s plans to sell its assets to Binance.US, according to a dated court filing January 4.
In this limited objection, the SEC claimed that Voyager failed to provide certain information. Specifically, he said Voyager failed to show that Binance.US would be able to complete a transaction above $1 billion.
Additionally, the SEC said Voyager did not provide enough details about how it planned to protect customer assets from theft or loss. The regulator also said that Voyager had not shown how it could rebalance its crypto wallet if the sell transaction was not successfully completed by a certain date.
The SEC said the issues raised today have been sent to Voyagers’ attorney. He also said he had been informed that a revised statement would be provided.
The Misfortunes of Voyager
Voyager Digital halted withdrawals and declared bankruptcy in the first week of July 2022. It began the process of auctioning off its assets in the months that followed. Although FTX was initially named as the winner of Voyager’s auction, FTX itself went bankrupt in November, forcing the two companies to abandon the deal.
Voyager quickly resumed bidding. Binance.US, one of the top bidders in the first phase, re-entered the auction and placed the highest bid. On December 19, it was announced that Binance.US would buy the assets of Voyager Digital for $1.022 billion.
The above agreement will allow funds to be fully distributed to users. Although Voyager has obtained permission to retake some withdrawal of money in august it looks like it didn’t include all user assets and the auction is needed to make users whole.
