SEC Objection to Voyager-Binance US Deal Scrutinized by Judge
• US judge criticized SEC for vague objection to Voyager Digital’s restructuring deal with Binance.US
• SEC attorney said the regulator can’t take a position on the legality of the plan yet
• Judge Wiles asked for specifics from the SEC to explain their concerns
SEC Objection to Voyager-Binance US Deal Questioned by US Judge
A United States judge has scolded the Securities and Exchange Commission over its vague objection to Voyager Digital’s restructuring deal with Binance.US. At a March 2 hearing in a New York court, U.S. bankruptcy judge Michael Wiles asked for specifics on its concerns, saying that if there are reasons to be concerned he needs to hear them.
Background of Case
Voyager announced a restructuring plan on Dec. 19th in order to bring itself out of Chapter 11 bankruptcy where crypto exchange Binance.US was set up acquire its assets for $1.02 billion — an option Voyager said at the time represented the “highest and best bid for its assets”. However, The SEC filed an objection to the sale on Feb 22nd claiming aspects of the restructuring plan could breach securities laws, namely crypto transactions that will need to happen in order redistribute funds back into Voyager accounts holders’ pockets .
SEC Attorney Position
In court, SEC attorney William Uptegrove offered a reserved answer when asked if the regulator believes the plan violates law, saying “We can’t take a position at this point”. The attorney explained that due process must follow before any statement is made as it is nonpublic by federal law.
Judge Wiles Criticism
Judge Wiles hit back saying “deliberative is one thing but what have you done” adding “if there are reasons to be concerned here I need to hear specifics”. He further said that it would be difficult for him make decision without details from both sides and asked why they couldn’t come up with solutions instead of simply objecting or approving it altogether.
The case is still ongoing and no decision has been made as both parties continue discussion regarding how they should move forward given current circumstances while addressing any security issues brought up by either side in order ensure peace of mind when handling such sensitive information like cryptocurrency transactions involving large sums of money .