SEC Objection to Voyager-Binance.US Deal Questioned by US Judge

SEC Objects to Voyager-Binance.US Deal

• The Securities and Exchange Commission (SEC) filed an objection to the sale of Voyager Digital’s assets to Binance.US for $1.02 billion.
• At a hearing in a New York court, U.S. bankruptcy judge Michael Wiles questioned the SEC’s vague reasoning for objecting to the deal.
• The court is considering a restructuring plan that will need approval from the SEC and the Committee on Foreign Investment in the United States (CFIUS).

Judge Scolds SEC for Vague Objection

U.S. bankruptcy judge Michael Wiles scolded the Securities and Exchange Commission (SEC) during a March 2 hearing in a New York court over its vague objection to Voyager Digital’s proposed sale of its assets to Binance.US for $1.02 billion. Judge Wiles asked for specifics on its concerns and said that it was asking to “stop everybody in their tracks” without explaining how to address them. The SEC attorney William Uptegrove offered a reserved answer when asked if they believed the plan violated the law, saying that they could not take a position at this point as their process was nonpublic by federal law. Judge Wiles hit back, saying “deliberative is one thing, but what have you done?” and added, “if there are reasons to be concerned here, I need to hear specifics.”

Restructuring Plan Announced in December 2020

Voyager announced its restructuring plan on Dec 19 with plans for crypto exchange Binance.US acquire its assets for $1.02 billion — an option which Voyager said at the time represented the “highest and best bid for its assets.” For this deal to go through, it requires court approval from Judge Wiles as well as go-ahead from both the SEC and CFIUS who are investigating if it will entail foreign investment or raise national security concerns before granting permission..

Continued Arguments on Bankruptcy Plan Scheduled

Judge Wiles is set own hear continued arguments on the bankruptcy plan on March 3rd 2021 before making his decision whether or not allow this deal between Voyager and Binance US go through or not..

Conclusion

It remains uncertain whether or not these two companies will be able merge together as there are still many questions left unanswered from both parties especially concerning securities laws violations as raised by The SEC during their hearing with Judge Wiles.. We can only wait until more information comes out after next week’s hearings..