According to reports, the bankruptcy court overseeing Voyager Digital’s case reprimanded the US Securities and Exchange Commission for its evasive justification for opposing the crypto lending company’s planned sale to Binance. US.
According to a Reuters story, U.S. bankruptcy judge Michael Wiles said during a hearing on March 2 in a New York court that the Securities and Exchange Commission (SEC) essentially wanted to “halt everyone in their tracks” without articulating how to resolve problems it had with the sale.
The crypto exchange Binance.US will buy Voyager’s assets for $1.02 billion under a restructuring plan revealed on December 19 of last year to help it exit Chapter 11 bankruptcy; at the time, Voyager claimed that this was the “highest and best offer for its assets.”
Nevertheless, the SEC objected to the sale on February 22, arguing that several components of the restructuring plan, namely the cryptocurrency transactions that would be required to rebalance money to transfer to Voyager account holders, might violate securities laws.
When questioned whether the regulator thought the proposal broke the law in court, SEC attorney William Uptegrove gave Judge Wiles a guarded response, saying: “At this time, we are unable to take a position. The SEC is a deliberative organization, and federal law prohibits the public from seeing its deliberations.”
Deliberate is one thing, but what have you done? Wiles retaliated, adding that “if there are grounds to be worried here, I need to hear details.”
The transaction has to be approved by the court, the SEC, and the Committee on Foreign Investment in the United States (CFIUS), which is looking into the deal to see whether it involves foreign investment and may be problematic for national security.
On March 3, Judge Wiles is scheduled to hear further arguments over the bankruptcy proposal.a suggested Binance. Customers of Voyager would be transferred to the cryptocurrency exchange under the US proposal, where they would be allowed to withdraw their money for the first time since the platform declared bankruptcy in July of last year.In a survey of 61,300 account holders with claims against the cryptocurrency lender conducted at the time of the bankruptcy, 97% of Voyager’s clients said they supported the idea, which would supposedly allow users to recover over 70% of their deposited value.