von • The US judge scolded the Securities and Exchange Commission (SEC) over its objection to Voyager Digital’s restructuring deal with Binance.US.
• The SEC said that aspects of the restructuring plan could breach securities laws, namely the crypto transactions that will need to happen to rebalance funds to redistribute to Voyager account holders.
• The court asked for specifics from the SEC on their concerns about the deal.
Questions About Restructuring Deal
At a March 2 hearing in a New York court, U.S. bankruptcy judge Michael Wiles questioned the Securities and Exchange Commission (SEC) on their vague objection to Voyager Digital’s proposed sale to Binance.US which would see crypto exchange acquire its assets for $1.02 billion dollars.
SEC Response
When asked if the regulator believes the plan violated any laws, an attorney representing the SEC William Uptegrove offered a reserved response saying: “We can’t take a position at this point.“ Judge Wiles then pressed Uptegrove further asking „if there are reasons to be concerned here, I need to hear specifics.“
Securities Law Concerns
The SEC had filed an objection on Feb 22nd claiming aspects of the restructuring plan could breach securities laws, namely because of crypto transactions that will need to happen in order to rebalance funds and redistribute them back into Voyager account holders‘ wallets.
Highest Bidder Offer
Voyager had announced on Dec 19th that Binance was offering them ‘the highest and best bid’ for their assets as part of their Chapter 11 bankruptcy proceedings.
Judge Scolds SEC
Judge Wiles scolded the US regulator for not having any concrete reasoning behind their objections or how they planned on addressing them, accusing them of wanting “to stop everybody in their tracks” without explaining why or what steps should be taken next.
