• A U.S. judge has questioned the SEC’s vague objection to Voyager Digital’s proposed sale to Binance.US.
• The SEC had filed an objection to the sale on Feb. 22, claiming aspects of the restructuring plan could breach securities laws.
• At a hearing in a New York court, U.S. bankruptcy judge Michael Wiles asked for specifics from the SEC on its concerns over the deal.
SEC Objection to Voyager-Binance Deal Questioned
A United States judge scolded the Securities and Exchange Commission (SEC) over its vague objection to Voyager Digital’s proposed sale to Binance US and asked for specifics on its concerns.
Background of Proposed Sale
Voyager announced a restructuring plan on Dec 19, 2020 that would have seen crypto exchange Binance US acquire its assets for $1.02 billion — an option which was said at the time to represent the “highest and best bid for its assets.” The SEC however filed an objection to the sale on Feb 22, 2021 claiming aspects of the restructuring plan could breach securities laws.
SEC Asked Questions In Court Hearing
At a March 2nd hearing in a New York court, U.S Bankruptcy Judge Michael Wiles said that without explaining how to address concerns it had with regards to the deal, The SEC had basically asked to “stop everybody in their tracks”. William Uptegrove, attorney for The SEC was asked if they believed that any violations of law could be found within this proposed plan but he answered saying “We can’t take a position at this point” due to it being part of their deliberative process.
Judge Scolds Vague Reasoning
Judge Wiles scolded The SEC over their vague reasoning behind objecting to Voyager’s proposed sale and demanded more specificity regarding what aspects of it violated securities laws.
Conclusion
< p >The court will resume discussion on this matter at another hearing scheduled for March 9th 2021.