Circle accuses US SEC for failed 9 billion dollar spac-deal: ft

Circle accuses US SEC for failed 9 billion dollar spac-deal: ft

CIRCLE, the company behind the USDC stable, has blamed the US stock exchange supervisory authority (SEC) for its failed plans for the IPO.

According to a new report by FT, the regulatory authority did not sign the 9 billion dollar deal.

This is done for a month after CEO Jeremy Allaire ends the agreement of the company with the Concord Acquisition Corp. announced and thus withdrawn from his plan to go to the stock exchange. The manager then said that Circle did not "qualify the Sec in time".

spac deal failed

With an evaluation of $ 4.5 billion in July 2021, Circle announced that it would go to the stock exchange, in which a new deal with Spac Concord Acquisition Corp. negotiated. A few months later, it was changed when its assessment doubled to $ 9 billion. The USDC issuer then said that he would go to the stock exchange by December 2022. The step would have brought both members of the USDC center consortium to the public market.

When the cryptoma market broke, however, bankruptcies occurred that put the room in considerable turbulence. Circle, on the other hand, said that the negative market mood was not a factor that led to the task of Spac. The company wrote in a statement that

"We never expected the SEC registration process to be quick and easy. We are a new company in a new industry. It is necessary and appropriate that the SEC carries out a thorough, strict review process, in particular in view of the rapid expansion and development of Circle in the 15 months between our first submission to the SEC in August 2021 and the end of the planned fusion in the past Month. "

During the first registration of Circle and in December 2022, when the deal achieved its expiry date with several companies in this area due to regulatory confusion about the interactions of the US supervisory authorities, a lot of time was lost. The subsequent FTX implosion blocked any opportunities for admission from crypto companies.

Spac backs

The deal of Circle would have been one of the largest in the world with Spac. The collapse is one of the many setbacks to which the crypto industry has been exposed to over the years, since its relationship with the SEC does not recover. However, it is not the first time that such a high level of awareness has failed.

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