• U.S Bankruptcy Judge Michael Wiles has expressed concerns about the U.S Security and Exchange Commission’s (SEC) objection to a Voyager restructuring deal proposed by Binance.
• The SEC has opposed the deal claiming that it violates securities laws, but have yet to provide specifics as to why.
• Judge Wiles asked the SEC attorney William Uptegrove for specifics, calling the regulator’s “nonpublic” process “deliberative one”.
Judge Critical of SEC Objections
U.S Bankruptcy Judge Michael Wiles has expressed his concern about the U.S Security and Exchange Commission’s (SEC) objections to a Voyager restructuring deal proposed by Binance at a court hearing in New York on March 2 . The Voyager Digital restructuring plan would involve the sale of just over $1 billion worth of its assets to Binance US.
SEC Claims Deal Violates Securities Laws
The SEC has opposed the deal, claiming that it violates securities laws, but have yet to provide specifics as to why when questioned by Judge Wiles at the court hearing. In typical fashion, SEC attorney William Uptegrove said,“we can’t take a position at this point,“ before adding, „the SEC is a deliberative body, and its process is a nonpublic one by federal law.“
Judge Demands Specifics
Judge Wiles was not too impressed with this response and demanded specifics from Uptegrove: „Deliberative is one thing, but what have you done? If there are reasons to be concerned here, I need to hear specifics.“
SEC Ramping Up War On Crypto
The SEC has ramped up its war on crypto this year and appears to be „carpet bombing“ the entire industry in an attempt to convince everyone aside from Bitcoin that their asset is considered a security. In this specific case they claim that Voyager’s VGX sale violated securities laws but have yet to provide any evidence or details as such why.
Final Decision To Be Made By Judge Wiles
If approved by Judge Wiles, the Voyager-Binance deal will go through allowing Binance US access over $1billion worth of assets owned by Voyager Digital Ltd., however if rejected then both companies will still remain separate entities with no further business ties between them.