- A U.S. Bankruptcy Judge has criticized the SEC’s opposition to a restructuring deal proposed by Binance.
- The Voyager Digital restructuring plan would involve the sale of $1 billion worth of its assets to Binance.US.
- The SEC has opposed the deal, claiming it violates securities laws, but has yet to provide specifics for their reasoning.
Judge Criticizes SEC Response
U.S. Bankruptcy Judge Michael Wiles spoke out about the U.S. Security and Exchange Commission’s objections to a Voyager restructuring deal proposed by Binance during a court hearing in New York on March 2nd. The Voyager Digital restructuring plan would involve the sale of just over $1 billion worth of its assets to Binance.US, however, the SEC has opposed this claiming that it violates securities laws. When questioned about the reasoning behind the opposition, SEC attorney William Uptegrove failed to provide an answer which did not go down well with Wiles who said: “Deliberative is one thing, but what have you done? If there are reasons to be concerned here, I need to hear specifics.”
SEC Crypto Warpath Continues
The SEC has ramped up its war on crypto this year and appears determined to police every asset aside from Bitcoin as a security. In relation to this particular case, the regulator claims that Voyager’s VGX sale violated securities laws but has yet to provide any evidence or details as to why they object so strongly against this specific deal between Binance and Voyager Digital Ltd. Should Judge Wiles approve the proposed restructuring plan then it could set a precedent for other deals involving crypto-assets and their respective regulatory authorities across North America in future cases too.
Voyager Restructuring Plan
Under terms of this restructuring plan proposed by Binance US., $1 billion worth of assets belonging to Voyager Digital Ltd would be sold off with part proceeds going towards paying back creditors owed money by them while others will be used as compensation payments for certain liquidation costs incurred along with any expenses related directly or indirectly connected with this transaction itself such as legal fees etc… This plan also includes provisions that allow for future growth potential should demand for digital currencies increase significantly within North America over time too further justifying why both parties involved feel that it is beneficial overall despite some regulatory concerns from other interested parties including those at the US Securities and Exchange Commission (SEC).
Benefits For Both Parties Involved
Whilst this restructuring plan provides numerous benefits for both parties involved (Binance US & Voyager Digital Ltd) such as increased liquidity options available in terms of digital currencies amongst many other things too – there are still various regulatory concerns being raised by some external stakeholders including those at The United States Securities & Exchange Commission (SEC). This was highlighted even more so during recent court proceedings where Judge Michael Wiles made his thoughts clear on how he felt about these objections when he asked “Deliberative is one thing, but what have you done? If there are reasons to be concerned here, I need to hear specifics.”
Overall it remains unclear whether or not Judge Wiles will ultimately approve of this proposed restructuring agreement between Binance US & Voyager Digital Ltd due mainly because important questions related specifically around potential violations regarding existing securities law regulations remain unanswered at present time – something which needs addressing if either party wishes move forward with their plans successfully without facing further delays or complications down line later on down track too!