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.
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 (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) in 2022. Bitcoin lost nearly 60% of its value in the year, while Ethereum declined by almost 67%.
Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.